2019 (1) TMI 1482

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....d off). Such a return was processed under Section 143(1) of the Income Tax Act, 1961 ("the Act" for short) and accepted without scrutiny. To reopen such assessment the respondent No.1­Assessing Officer issued the impugned notice. In order to do so, he had recorded following reasons:­ "1. The assessee, has filed Return of income for A.Y. 2011­12 on 26/07/2011 declaring total income at Rs. 27,96,412/­ . Return of income was processed u/s 143(1) of the Act at Rs. 27,96,412/­. The assessee has declared income from other sources. 2. Information was received in this office from DDIT (Inv) Unit 4(1), Kolkata vide their letter No.DDIT(Inv.)/Unit4(1)/Kol/Trust/2015­16/2291 dated 02.12.2015 that a survey action watch con....

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....5. On verification of the ITS details on ITD system & ITBA/ 360 degree, it is found that the Transactions carried out by the assessee during the year are not commensurate with the assessee's profile and the source and nature of the transactions remain unverifiable and unexplained. 6. In this case, return of income was filed for the year under consideration but no scrutiny assessment u/s 143(3) of the Act was made. Accordingly, in this case, the only requirement to initiate proceedings u/s 147 is reason to believe which has been recorded in above paras. It is pertinent to mention here that in this case the assessee has filed return of income for the year under consideration but no assessment as stipulated u/s 2(40) of the Act was made....

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....he said Trust. Being a case where the return has been accepted without scrutiny, the Assessing Officer would have much wider latitude in reopening the assessment. Nevertheless as held by the Supreme Court in case of Assistant Commissioner of Income Tax vs. Rajesh Jhaveri Stock Brokers Pvt. Ltd. (2007) 291 ITR 500 (SC), even in such a case the requirement that the Assessing Officer must have reason to believe that income chargeable to tax has escaped assessment, must be satisfied. Such a view is consistently followed by this Court. In case of Inductotherm (India)(P) Ltd. Vs. M. Gopalan, Deputy Commissioner of Income Tax (2013) 356 ITR 481(Guj). Gujarat High Court has also expressed the same view. Within this narrow scrutiny we have examined ....