TaxTMI 
TaxTMI 
2022 (4) TMI 553
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....e Act then consequence thereof will be to set aside all revised orders passed by respondent no.2 u/s 92-CA(3). He submitted that there is enough material to set aside notice under Section 148 of the Act and at the same time, if notice u/s 148 goes, there will be a cascading effect and all other orders will also go. 3. Petitioner filed its return of income for the Assessment Year 2012-2013 on 29.11.2012 declaring total income of Rs. 9,90,48,280/-. Return was processed u/s 143(1) of the Act on 19.02.2014 accepting the return income of Rs. 9,90,48,280/-. Petitioner's case was thereafter taken up for regular assessment and assessment order under Section 143(3) of the Act came to be passed on 28.3.2016. Total income was assessed at Rs. 11,11,94,030/-. 4. Petitioner thereafter received impugned notice dated 30.3.2019 u/s 148 of the Act in which, respondent no.1 asserted that he had reasons to believe that income chargable to tax for Assessment Year 2012-13 has escaped assessment within the meaning of Section 147 of the Act. Petitioner was provided reasons for reopening alongwith approval received under Section 151 of the Act. Mr. Sridharan further submitted that the reasons recorded cl....
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....by any limitation. When we speak of "law", we ordinarily speak of norms or guiding principles having legal effect and legal consequences. To possess legal significance for that purpose, it must be enacted or declared by competent authority. The legal sanction vivifying it imparts to it its force and validity and binding nature. Law may be statutory law or, what is popularly described as, judge made law. In the former case, it proceeds from enactment having its source in competent legislative authority. Judge made law emanates from a declaration or exposition of the content of a legal principle or the interpretation of a statute, and may in particular cases extend to a definition of the status of a party or the legal relationship between parties, the declaration being rendered by a competent judicial or quasi-judicial authority empowered to decide questions of law between contending parties. The declaration or exposition is ordinarily set forth in the judgment of a court or the order of a tribunal. Such declaration or exposition in itself bears the character of law. In every case, therefore, to be law it must be a creation by a formal source, either legislative or judicial author....
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....ognised that an examination of such cases may be an important factor in judging the effectiveness of assessment procedure.......... It is, however, to forming a general judgment rather than to the detection of individual errors of assessment, etc., that the audit enquiries should be directed. The detection of individual errors is an incident rather than the object of audit." Other provisions stress that the primary function of audit in relation to assessments and refunds is the consideration whether the internal procedures are adequate and sufficient. It is not intended that the purpose of audit should go any further. Our attention has been invited to certain provisions of the Internal Audit Manual more specifically defining the functions of internal audit in the Income-Tax Department. While they speak of the need to check all assessments and refunds in the light of the relevant tax laws, the orders of the CIT and the instructions of the CBDT, nothing contained therein can be construed as conferring on the contents of an internal audit report the status of a declaration of law binding on the ITO. Whether it is the internal audit party of the Income-Tax Department or an audit ....
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....his belief that income chargeable to tax had escaped assessment. The Court had relied upon another Judgment of this Court in the matter of Commissioner of Income Tax Vs. Rajan N. Aswani [(2018) 91 taxmann.com 313/403 ITR 30]. Paragraph 11 of the said judgment reads thus; "11. There is one more ground on which the impugned notice must be quashed. We may recall, the counsel for the petitioner had argued that the Assessing Officer was acting at the behest of the audit party. Such a ground was not taken in the petition. However, we had permitted the petitioner to raise the same in the rejoinder and provided sufficient time to the revenue to respond. This being a pure question of examination of contemporaneous documents, we had requested the counsel for the revenue to make available for our perusal the original file of the department, which he had so done. The perusal of the file would clearly show that the audit party had brought to the notice of the Assessing Officer the possibility of invoking Section 2(22) (e) of the Act in relation to the loan transaction in question. The Assessing Officer under a detailed reply dated 9th June, 2015 had opposed any such invocation of Section 2(22....