2023 (9) TMI 1042

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.... ("the Act") on the basis that there can never be a reason to believe that any income has escaped assessment. 2. Petitioners had filed returns of income on 10th August 2007 for Assessment Year 2007-2008 declaring total income of Rs. 2,95,990/- and Rs. 3,95,940/-, respectively. The returns of income were processed under Section 143(1) of the Act but no intimation under Section 143(c) of the Act was served on Petitioners. 3. Petitioners received notices dated 21st March 2014 and 24th March 2014 respectively under Section 148 of the Act. Petitioners replied raising objections to the notices and asked for a copy of recorded "reasons to believe". The reason to believe was furnished by Respondents. Petitioners filed objections on 4th June 2....

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....ying the requirement in this behalf as laid down in the provisions of Section 147 of the Act. The impugned notice under Section 148 of the Act has been issued for the assessment of the alleged escaped income which has already been assessed in the reassessment for Assessment Year 2007-2008 of Crown. The same income cannot be simultaneously assessed in the hands of two different assessees. Reasons for re-opening says "Thus, it was alleged that the company had introduced its unaccounted money in the Balance Sheet......". Company is Crown. The requirement of the provisions of Section 147 of the Act is that there should be reasons to believe that income chargeable to tax has escaped assessment in the case of Petitioners to whom notices under Sec....

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....AO has merely stated, "I have reason to believe that income of Rs. 7,00,000/- chargeable to tax in assessee's case..... has escaped assessment," which shows that proceedings have been initiated in a casual manner so as to conduct roving inquiries. The AO in his letter dated 15th September 2014 and 14th August 2014 respectively rejecting the objections raised by Petitioners, has given fresh reasons not included in the reasons as recorded under Section 148(2) of the Act, which Courts have time and again held cannot be done. As held in First Source Solutions Limited v. Assistant Commissioner of Income Tax, Central Circle-12(2)(1) and Others Writ Petition No. 2762 of 2019 dated 31st August 2021., the reasons for re-opening an assessment has to ....