TaxTMI 
TaxTMI 
2019 (9) TMI 197
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....nt for the A.Y. 2011-12 as well as order dated 12/10/2018 disposing of the objections raised by the petitioner against reopening of the assessment. 2.00. Short facts leading to the present petition are as under :- 2.01. The return of income was filed by the petitioner for the A.Y. 2011-12. Intimation u/s.143 of the Act was received by the Income Tax department. Thereafter, no scrutiny assessment was undertaken by the concerned A.O. However, reopening notice u/s.148 of the Act was issued on 29/3/2018 by the respondent. The petitioner filed reply to the notice of reopening. The reasons of reopening were supplied to the petitioner, which are placed on record. As per the reasons for reopening, National Stock Exchange Ltd., Bombay had foun....
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....e notice u/s.148 on 18/4/2018. It is contended that the petitioner filed original return of income u/s. 139 on 28/9/2011 disclosing all transactions including transactions entered into with Javerilal Oswal Commodities P. Ltd. and said return was processed u/s. 143(1). It is also contended that the said amount was also paid to the companies by way of withdrawal from the regular bank account. It is contended that in the said assessment, the assessee had not booked any profit or loss in the commodities related transaction in the year under consideration and therefore, there is no question of any taxable income in the said assessment year. However, the objections raised by the petitioner vide letter dated 8/8/2018 came to be rejected vide order....
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....ng one of the brokers had carried out transactions at NSEL Platform to the tune of Rs. 66.48 Crores on behalf of its client / investor and therefore, survey operation u/s 133 was carried out at the office premises of Javerilal Oswal Commodities Pvt Ltd. at Ahmedabad. During the course of survey, it was found that an amount of Rs. 51,88,301/- was shown as outstanding from NSEL in the case of the petitioner as on 3/9/2013. It is contended that during the course of post survey proceedings, copy of the return of income of the relevant period, copy of client registration form and necessary supporting evidence in support of the source of investment were called. It is contended that on verification of the ledger account of Javerilal Oswal Commodit....
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....rutiny, it is therefore, necessary to verify the transactions with respect to the information received as there is an escapement of income of more than 1 lakh as the transactions do not correspond to the return that if filed." 5.02. From the reasons recorded for reopening the assessment, it is clear that the A.O. wish to verify the transaction with respect to the information received by the department. It is well settled through serious of judgements of this Court that re-assessment even if in case where return was not scrutinized before the income chargeable to tax has escaped before acceptance originally cannot restore unless the A.O. has reason to believe that the income chargeable to tax has escaped. In other-words, for mere verifica....
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.... given to the words 'to believe' as found in Section 147 of the Act. Therefore, the words 'whatever reasons' in Rajesh Jhaveri Stock Brokers Pvt. Ltd., (supra), only means whatever the material, the reasons recorded must indicate the reasons to believe that income has escaped assessment. This is so as reasons as recorded alone give the Assessing Officer power to re-open an assessment, if it reveals/ indicate, reasons to believe that income chargeable to tax has escaped assessment. 12. The re-opening of an Assessment is an exercise of extra ordinary power on the part of the Assessing Officer, as it leads to unsettling the settled issue assessments. Therefore, the reasons to believe have to be necessarily recorded in ....