2018 (1) TMI 1114

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....t, 1998 issued by respondent no.1 - Assistant Commissioner of Income Tax under Section 148 of the Income Tax Act, 1961 (the Act). The impugned notice seeks to reopen the assessment for Assessment Year 199495.   3. For the Assessment Year 1994-95, the petitioners filed its return of income on 31st August, 1994 declaring a total income of Rs. 6.43 lakhs. During the course of assessment proceedings, the Assessing Officer called upon the petitioners to furnish information with regards to loans / advances taken from its sisters concern M/s. A.T.C. Clearing and Shipping (P) Ltd. in which the petitioners hold more than 10% share holdings. This was in the context of deemed dividend under Section 2(22)(e) of the Act. On examination of the acco....

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....been under assessment to the extent of difference between all credit transaction and peak credit.   In view of the above, under assessment of the income, it is proposed to reassessment u/s 147. Notice u/s 148 reopening the assessment is issued". 5. The petitioners had filed this petition challenging the reopening notice as being without jurisdiction. The respondents have entered appearance but have not filed any reply opposing the petition.   6. In the present case, the impugned Notice dated 10th August, 1998 has been issued within the period of 4 years from the end of the relevant assessment year i.e. A.Y. 1994-95. The impugned reopening notice is in respect of the assessment which has been done under Section 143(3) of the Ac....

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.... support from the changes made to section 147 of the Act."   7. In the present facts, from the reasons as recorded in support of the impugned notice, it is clear that the Assessing Officer has arrived at a reason to believe that income chargeable to tax has escaped assessment on the same material, which was a subject matter of consideration while passing of the assessment order dated 14th February, 1996 under Section 143(3) of the Act. Thus, there is no tangible material which was not available and examined during the regular assessment proceedings under Section 143(3) of the Act.   8. In fact, in this case we find that the Assessing Officer had during the assessment proceedings, leading to the order dated 14th February, 1996 un....