TaxTMI 
TaxTMI 
2017 (11) TMI 1355
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....n with exploration and extraction and production of mineral oils. During the year under consideration, the assessee has filed the return of income on 02.12.2005 at Rs. 18,59,527/-. The Assessing Officer completed the assessment u/s 143(3) of the Income Tax Act (hereinafter to be referred as 'the Act') at an income of Rs. 12,645,500/- by order dated 22.11.2006. The notice was issued to the petitioner company u/s 148 of the Act by the respondent no.1 to reassess the income of the petitioner alleging the same to have escaped assessment. Petitioner company submitted before the respondent no.1 that the returned filed u/s 139(1) of the Act may be treated as return filed u/s 148 of the Act. Petitioner company was directed to submit the return with....
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.... It is in these circumstances, the notice u/s 148 of the Act was issued to the petitioner company on 28.3.2011. The objections raised by the petitioner company to the reasons assigned for reopening of case have been discussed in length by the respondent no.1. 4. Their Lordships of Hon. Supreme Court in (2010) 2 SCC 723 in the matter of 'Commissioner of Income Tax Delhi v. Kelvinator of India Ltd.' has held that after amendment of 1989, the A.O. can reopen assessment provided he has 'reason to believe' that income has escaped assessment based on tangible material. It was further held that mere 'change of opinion' does not empower the A.O. to review assessment in the garb of reassessment. Their Lordships have held as under: - "5. On going ....
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....r has power to reopen, provided there is "tangible material" to come to the conclusion that there is escapement of income from assessment. Reasons must have a live link with the formation of the belief. Our view gets support from the changes made to Section 147 of the Act, as quoted hereinabove. Under the Direct Tax Laws (Amendment) Act, 1987, Parliament not only deleted the words "reason to believe" but also inserted the word "opinion" in Section 147 of the Act. However, on receipt of representations from the companies against omission of the words "reason to believe", Parliament reintroduced the said expression and deleted the word "opinion" on the ground that it would vest arbitrary powers in the assessing officer. 8. We quote hereinbe....
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....ment that production of the account books and other documentary evidence relevant for assessment must imply a full and true disclosure of all material facts must be rejected out of hand in the light of the provisions of Explanation (1). The Division Bench further held that the there may be a presumption that the assessment proceedings have been regularly conducted, but there can be no presumption that even when the order of assessment was silent, all possible angles and aspects of a controversy had been examined and determined by the Assessing Officer. The principle that a mere change of opinion cannot be a basis for reopening computed assessments would be applicable only to situations where the assessing officer has applied his mind and ta....
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....ngs have been regularly conducted, but there can be no presumption that even when the order of assessment is Page 436 silent, all possible angles and aspects of a controversy had been examined and determined by the assessing officer. It is trite that a matter in issue can be validly determined only upon application of mind by the authority determining the same. Application of mind is, in turn, best demonstrated by disclosure of mind, which is best done by giving reasons for the view which the authority is taking. In cases where the order passed by a statutory authority is silent as to the reasons for the conclusion it has drawn, it can well be said that the authority has not applied its mind to the issue before it nor formed any opinion. Th....