TaxTMI 
TaxTMI 
2022 (4) TMI 1391
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....t Rs.2,54,08,853/-. The ROI was processed under Section 143(1) of the Income Tax Act, 1961 (the said Act). 2. Subsequently, petitioner received a notice dated 31st March 2021 under Section 148 of the Act stating that the respondent no.2 has reasons to believe that petitioner's income for A.Y.2014- 15 chargeable to tax has escaped assessment within the meaning of Section 147 of the Act. Petitioner was later provided a copy of the approval under Section 151 of the Act alongwith reasons recorded for such belief. 3. Petitioner filed its objections and the objections came to be rejected by an order dated 21st January 2022. The notice dated 31st March 2021 and the order dated 21st January 2022 are impugned in this petition. 4. Mr. Pardiwalla s....
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....asons recorded, a copy whereof is at Exhibit B to the petition, the proposed re-opening is set out to be for A.Y.2014-15. The information based on which respondent no.2 has formed an opinion that there is reason to believe escapement of income, in the reasons it is stated, relates to A.Y.2015-16. In the conclusion given in the reasons recorded for re-opening, respondent no.2 states ".........I have reason to believe that the amount exceeding Rs. One Lakh chargeable to tax has escaped assessment for the assessment year 2016-17 within the meaning of Section 147 of the I. T. Act, 1961........". Therefore, respondent no.2 himself is not clear for which year or based on information for which year that he proposed to re-open, as he had reasons to....
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.... of Rs.2,46,07,261/-. It came to noticed that during the year assessee has made of shares/derivatives amounting to Rs. 2,46,07,261/- and made huge profit from these transactions. However, it has not been accounted in books of account. Further, it is observed that the assessee had earned long term profit from trading on shares/derivative, which found to be fictious and claimed as exempted profit as long term capital gain on share trading. Thus, it is crystal clear that the assessee has routed his unaccounted income as long term capital gain and accounted in books of account. Accordingly, given colour of genuine transaction. Thus, I am at the opinion that assessee has escaped assessment exceeding Rs. One Lakh." 10. Reading this, nobody can m....
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.... of the assessee from assessment. The fact that the words "definite information" which were there in Section 34 of the Act of 1922 at one time before its amendment in 1948 are not there in Section 147 of the Act of 1961 would not lead to the conclusion that action cannot be taken for reopening assessment even if the information is wholly vague, indefinite, farfetched and remote. The reason for the formation of the belief must be held in good faith and should not be a mere pretence." (emphasis supplied) 12. Therefore, there must be live link or close nexus between the material before the ITO in the case at hand and the belief which he was to form recording the escapement of income. It is also no doubt true that Court cannot go into the suf....