1998 (12) TMI 76

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....ts return for the assessment year 1984-85, declaring its taxable income at Rs. 91,640. Along with the return it filed all necessary documents including balance-sheet, trading account, profit and loss account, depreciation statement, etc. Upon this the respondent-Income-tax Officer completed the assessment proceedings and passed the assessment order dated March 26, 1986, under section 143(1) of the....

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....out the declaration of income and as such he had no material before him on the basis of which he could form the belief that the income for the relevant assessment year had escaped assessment. In other words, it is sought to be projected that he had wrongly assumed the jurisdiction without satisfying preconditions laid down in section 147(a) of the Act and had proceeded in the matter in a mechan....

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.... he must have reason to believe that such income had escaped assessment by reason of omission or failure on the part of the assessee, (i) to make the return under section 139, or (ii) to disclose fully and truly material facts necessary for the assessment for that year. Both these conditions must coexist to confer jurisdiction on the Income-tax Officer who is require to record reasons before initi....

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....r to be decided by the court. But the existence of the belief is subject to scrutiny if the assessee shows circumstances that there was no material before the Income-tax Officer to believe that the income had escaped assessment. Having regard to all this, all that remains to be seen is whether the respondent Income-tax Officer had satisfied the requirements of section 147 while issuing the impu....