2018 (12) TMI 1343

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.... decision of the Tribunal not perverse holding that the AO had to make further enquiry and gather material to come to entertain a belief that income has escaped assessment; whereas Court have held that it is only necessary that there be a prima facie belief recored by the AO and the process of gathering further material is only at the stage of assessment. (ii) Whether in law and on the facts of the instant case, was the Tribunal perverse in coming to the conclusion that since certain facts were brought to the notice of the AO for AY 2005-06, the reopening of AY 2004-05 is bad in law? 3. The respondent assessee is an HUF. It is a proprietor of M/s. Nandu Financial Services and has shown it brokerage income in the subject assessment yea....

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....erved that reopening notice issued under Section 148 of the Act, cannot be issued merely for fishing inquiry. The reasons to believe must have the rational connection to material facts on record. The impugned order of the Tribunal records that no material has come to the notice of the Assessing Officer for the formation of the belief that the assessee's income has escaped assessment on account of the gift not being genuine. The impugned order particularly records that in the assessment order for A.Y. 2005-06, there is no mention about the gift being received by the assessee not being genuine. Thus, on the above basis, the Tribunal concluded that the reasons as recorded do not indicate reasons to believe that income chargeable to tax has....