2021 (11) TMI 57

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....n the hands of petitioner. Petitioner has also alleged that in the reasons for re-opening, there is not even a whisper as to what was the tangible material in the hands of the Assessing Officer which made him believe that income chargeable to tax has escaped assessment and because notice has been issued four years after the assessment order, what was the material fact that was not fully and truly disclosed. 2. With the assistance of Mr. Agarawal we have perused the reasons for issuance of notice under Section 148 of the Income Tax Act, 1961 (the said Act), which was given to petitioner vide letter dated 2nd May 2019. We would agree with petitioner. 3. The law on this is well settled. To confer jurisdiction under Section 147 (a), two condit....

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.... the basis of which the Assessing Officer comes to the reason to believe that income chargeable to tax has escaped assessment can come to him from any source, however, reasons for the reopening has to be only of the Assessing Officer issuing the notice (Jainam Investments Vs. Assistant Commissioner of Income Tax Writ Petition No.2760 of 2019 dated 24th August 2021) 5. It is also settled law that the Assessing Officer has no power to review an assessment which has been concluded. If a period of four years has lapsed from the end of the relevant year, the Assessing Officer has to mention what was the tangible material to come to the conclusion that there is an escapement of income from assessment and that there has been a failure to fully an....

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.... It is for him to put his opinion on record in black and white. The reasons recorded should be clear and unambiguous and should not suffer from any vagueness. The reasons recorded must disclose his mind. Reasons are the manifestation of mind of the assessing officer. The reasons recorded should be self-explanatory and should not keep the assessee guessing for the reasons. Reasons provide link between conclusion and evidence. The reasons recorded must be based on evidence. The assessing officer, in the event of challenge to the reasons, must be able to justify the same based on material available on record. He must disclose in the reasons as to which fact or material was not disclosed by the assessee fully and truly necessary for assessmen....

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....s of M/s Evergreen Enterprises. It is also recorded in the reasons that based on statements recorded of partners of M/s Evergreen Enterprises and employees of M/s Evergreen Enterprises, it came to light that one of the individuals / business concerns has lent cash of Rs. 30,00,000/-. It is alleged that petitioner has lent cash loan of Rs. 30,00,000/- in Financial Year 2011- 2012 and therefore, petitioner has been indulging in lending of cash loan and therefore, the amount of Rs. 30,00,000/- has escaped assessment within the meaning of Section 147 of the Act. For ease of reference, the reasons is scanned and reproduced hereinbelow: Therefore, there is absolutely no mention as to how either the partners of M/s Evergreen Enterprises or the e....