2023 (11) TMI 38

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.... the matter is taken up for final hearing today. 2. By way of this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 31.03.2021 issued under sec. 148 of the Income Tax Act, 1961, and the order dated 19.08.2023 rejecting the objections of the petitioner. 3. Facts in brief are as under: 3.1 The petitioner is a partnership firm duly constituted under the Indian Partnership Act, 1932, engaged in petroleum business as dealer of Bharat Petroleum Corporation in petrol, diesel, grease etc and also a dealer of J.K. Tyres for their products. The petitioner maintains regular books of accounts and other records as required under different laws and rules and regulations framed by petroleum company....

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....gned notice and the reasons to believe, it is the case of the revenue that as per information received, it is noticed that this assessee has made cash deposits amounting to Rs. 1,06,68,500/-. The assessee has not disclosed the transaction for the year under consideration. According to the revenue, therefore, the income to the extent of Rs. 1,06,68,500/- is an undisclosed income and has escaped assessment in the return filed for the Assessment Year 2017-18. 5. Mr. S.N. Divatia, learned counsel for the petitioner, would submit that reading the reasons would indicate that they are not passed on any new material. He would submit that the Assessment Order under Sec. 143(3) of the Act was passed on 17.12.2019 after verifying the details and expl....

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....ation and it was on a satisfaction that the petitioner had not fully and truly disclosed his income for the assessment year under reference. The reasons for reopening are just and proper after obtaining prior approval. Relying on the decision of the Hon'ble Supreme Court in the case of ACIT Vs. Rajesh Jhaveri Stock Brokers (P) Ltd., reported in 291 ITR 500, he would submit that at the stage of initiation of reassessment proceedings under Sec.147 of the Act, it is not required to be conclusively proven that the income has actually escaped assessment. The only requirement is whether there is any relevant material on which a reasonable person can form the requisite belief that the taxable income has escaped assessment. He would, therefore, sub....