TaxTMI 
TaxTMI 
2020 (12) TMI 600
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....submitted that in this case, the original assessment was completed u/s.143(3) of the Act on 23.2.2015 determining the total income at Rs. 10,31,050/-. Thereafter, the AO issued notice u/s.148 of the Act dated 14.7.2016 for reopening the assessment u/s.147 of the Act after recording the following reasons: "The assessee purchased a piece of land in Plot No.514/2140, Bhubaneswar during 1984 for a total cost of Rs. 11,500/- and claimed to have developed the same like sand filling, constructing boundary wall etc and during the year 2002, the property was put for joint development with M/s. RSM Infrastructure Pvt Ltd., After completion of construction, the assessee received two flats measuring 3342 sq.ft besides part of a flat measuring 579 sq.....
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....ble with the Assessing Officer which could have triggered the reassessment proceedings by issuing notice u/s. 148. It was submitted that the Assessing Officer in the reassessment proceedings, has not been able to establish or bring on record any evidence substantiating the failure on the part of the assessee in disclosing fully and truly all material facts necessary for assessment. Ld A.R. submitted that fore reopening the assessment, the jurisdictional foundation is that the AO must have reason to believe that the income has escaped assessment and the same must be recorded in writing. 5. Further, ld A.R. submitted that the Assessing officer vide notice dated 26.5.2017 issued a show cause directing the assessee to show cause as to why a su....
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....veral judgments on this issue. 7. Ld A.R. further submitted that all procedure for completing the assessment fu/s.143(3) of the Act has been done in one sheet, as is produced by ld D.R. during the course of assessment. He further submitted that it is clearly evident from the reasons recorded that no new tangible information/material came to the knowledge of the assessing officer subsequent to the conclusion of the original assessment. The reasons recorded by the assessing officer do not even indicate or allege that any fresh information came to the knowledge of the assessing officer warranting exercise of jurisdiction under section 147/148 of the Act. 8. Replying to above, ld Sr DR supported the reassessment order u/s.147 r.w.s. 143(3) of....
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....or to Direct Tax Laws (Amendment) Act, 1987, re-opening could be done under above two conditions and fulfillment of the said conditions alone conferred jurisdiction on the Assessing Officer to make a back assessment, but in section 147 of the- Act [with effect from 1st April, 1989], they are given a go-by and only one condition has remained, viz., that where the Assessing Officer has reason to believe that income has escaped assessment, confers jurisdiction to re-open the assessment. Therefore, post-lst April, 1989, power to re-open is much wider. However, one needs to give a schematic interpretation to the words "reason to believe" failing which, we are afraid, Section 147 would give arbitrary powers to the Assessing Officer to re-open ass....