TaxTMI 
TaxTMI 
1990 (8) TMI 101
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....tution of India, the petitioners have challenged the jurisdiction of the Incometax Officer to issue notices under section 148 read with section 147(a) of the Income-tax Act, 1961, dated March 26, 1987, March 22, 1988, and September 1, 1987, for the assessment years 1978-79, 1979-89 and 1981-82, respectively. During the course of assessment proceedings, the assessee had, inter alia, filed copies....
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....formation, he formed a reason to believe that certain loans taken by the petitioners during the relevant previous years were not genuine and that the petitioners' income for those years had, thus, escaped assessment. He also held that that happened as result of the petitioners' not disclosing fully and truly all material facts necessary for the assessments. The first question is whether the sta....
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....sufficiency or adequacy of the material and substitute its own opinion for that of the Income-tax Officer on the point, it was held that it is not any and every material, howsoever vague and indefinite or distant, remote and farfetched, which would warrant the formation of the belief relating to the escapement of income. In the case of ITO v. Madnani Engineering Works Ltd. [1979] 118 ITR 1, the Su....
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.... proceedings. The petitioners had no further obligation. It was for the Income-tax Officer to investigate and determine whether such loans were genuine. It was admittedly not done during the original assessment proceedings. It cannot be held that the petitioners had failed to disclose fully and truly all material facts necessary for assessment. On the basis of the information indicated by me above....