2025 (9) TMI 302

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....cting the Petitioners' objections are also challenged. Though several grounds have been raised in the Petition challenging the jurisdiction to issue the 148 notice, one of the grounds is that, since the notice under Section 148 is issued after a period of 4 years from the end of the relevant assessment year, the first proviso to Section 147 stipulates that the income had escaped assessment because the assessee had failed to disclose fully and truly all material facts necessary for that assessment year. According to the Petitioner, in the present case, in the reasons for reopening the assessment of the Petitioner, there is not even an averment or an allegation that the Petitioners' income had escaped assessment because of any failure on the ....

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....able to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under Section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year." (emphasis supplied) 3. The said proviso clearly stipulates that when an Assessment under Section 143(3) or 147 has been carried out for the relevant assessment year, no action can be taken under Section 147 after the expiry of 4 years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment by reason of the failure on part of the assessee to make ....

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..... No. Case Packet Source Packet Source Description Source Name Information Type Value 1 Verification Suspicious Transaction --- Unexplained credit Rs. 43,46,350/- In view of the above facts and after due application of mind after analyzing all the relevant information in the case of the assessee in totality, I have reason to believe that income of Rs.43,46,350/- has escaped assessment for A.Y.2013-14 and the same is therefore required to be reopened for scrutiny assessment" 5. As can be seen from the aforesaid reproduction, the reason for reopening the assessment are as vague as it can be. There is not even an allegation in the said reasons that the income of the Petitioner has escaped assessment....

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....impermissiable. 7. In the view that we take, we are supported by a decision of a division bench of this Court to which one of us (B.P. Collabawalla J.) was a party in the case of Bombay Stock Excahnge Ltd. Vs. Deputy Director of Income Tax (exemption) and Ors. (2014 365 ITR 181). The division bench, after relying upon a decision of another division bench in the case of Hindustan Liver Ltd. Vs. R. B. Vatkar, reported in (2004 268 ITR 332 (Bombay)) stated as under : "9. It is true that the reasons for initiating reassessment proceedings do in fact state that there was a failure on the part of the petitioner to disclose fully and truly all material facts necessary for its assessment. However, as correctly submitted by Mr. Dastoor, ....

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....ssessing 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 assessment of that assessment year, so as to establish vital link between the reasons and evidence. That vital link is the safeguard against arbitrary reopening of the concluded assessment. The reasons recorded by the Assessing Officer cannot be supplemented b....