TaxTMI 
TaxTMI 
2021 (8) TMI 161
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....me Tax Act, 1961 (the Act) concerning AY 2002-03. 2. When the matter was called for hearing, the learned counsel for the assessee, at the outset, pointed out that the Assessing Officer initiated re-assessment proceedings under s. 147 of the Act and completed the assessment determining the assessed income at Rs. 14,49,620/- as against the returned income of Rs. 70,340/-. 2.1. Aggrieved by the enhancement in the returned income, the assessee filed appeal before the CIT(A) inter alia challenging the legality of jurisdiction under s. 147 of the Act. The CIT(A), however, dismissed the legal ground towards wrongful assumption of jurisdiction under s. 147 of the Act. 2.2. Aggrieved by the first appellate order, the Revenue filed appeal before t....
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....in its judgment dated 03.04.2019 allowed the appeal of the assessee. The order of the Tribunal dated 15.01.2018 was set aside and remanded back to the Tribunal for deciding the matter both on factual and legal score including the issue pertaining to the validity of notice under s. 148 of the Act. 5. In the background quoted above, the learned counsel for the assessee adverted to para No. 2 of the assessment order wherein the reasons recorded for issue of notice under s. 148 of the Act was extracted. It was pointed out that on a perusal of the reasons recorded, it can be seen that the ingredients of Section 147 of the Act are not fulfilled in the instant case in as much as the jurisdiction for reopening the concluded assessment was carried ....
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....hanged to different departments in the meeting of REIC. As per that information M/s. Shivnath Rai Rambhajan, Raigarh has evaded a purchase of Rs. 97 lakhs in its sales tax return during the financial year, which is relevant to assessment year, 2002-03. A letter was sent to Sales Tax Department, Raigarh to get the assessment order passed in this case. On perusal of Sales Tax assessment order, it is found that there were certain anomalies in sales shown by the assessee and therefore, further taxes and penalties have been imposed by the Sales Tax Department. In order to verify the genuineness of the facts, a notice u/s. 148 of Income Tax Act, 1961, is issued as it appears that there are certain income which has escaped from assessment." 8. On....
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....er High Courts for the proposition that re-assessment notice for mere verification or for conducting a fishing enquiry is not permissible in law notwithstanding that the return of income was not subjected the scrutiny under s. 143(3) of the Act. The action of the AO for invoking jurisdiction is thus inconsistent with the mandate of law and therefore requires to be quashed. 9. It is well settled by plethora of judicial precedents, including Pr. CIT vs. Manzil Dineshkumar Shah (2018) 406 ITR 326 (Guj), the SLP against which has been dismissed in (2019) 101 taxmann.com 259 (SC) that reopening is not permissible merely to seek investigation of facts collected without holding at least prima facie belief towards escapement of income based on rel....