TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 1587
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.... Patel waives service of notice of rule on behalf of respondent. 3. Having regard to the controversy involved in this petition, with the consent of the learned advocates for the respective parties, the matter is taken up for hearing. 4. By way of this petition under Article 226 of the Constitution of India, the petitioner has challenged the validity of notice issued under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act' for short) dated 31.03.2021 for the assessment year 2017-2018 whereby the respondent has proposed to reassess the completed assessment for the Assessment Year 2017-18. The petitioner also challenges the order passed on 28.2.2022 disposing of the objections raised by the petitioner against t....
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....copy of reasons recorded for reopening. Subsequently, respondent issued notice under Section 143(2) read with Section 147 of the Act on 15.1.2022 along with reasons recorded for reopening the assessment. 5.3 The petitioner, in response to the same, raised its objection against the reopening by way of communication dated 10.2.2022. It was the case of the petitioner that the search by the Excise Department conducted on 5.6.2015 was for period covering Financial Years 2012- 13, 2013-14 and 2014-15. However, the respondent had initiated re-assessment proceedings in case of the petitioner for the Assessment Year 2017-18, which was much later than such period. Further, it was the objection of the petitioner that the reasons recorded were factu....
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....d. 7. Learned advocate Mr. Divatia further submitted that section 147 of the Act empowers the Assessing Officer to assess or re-assess income chargeable to tax which he has reason to believe has escaped assessment. In order to re-open an assessment made u/s. 143(3) of the Act, the following conditions are required to be satisfied :- (a) The Assessing Officer must form a tentative or prima facie opinion on the basis of material that there is an under assessment or escapement of income; (b) He must record such prima facie belief into writing; (c) The belief formed is subjective but the reasons recorded or the information available on record must show that the belief is not a mere suspicion: (d) Reasons r....
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....5-16. There is no such duty in respect of FY 2016-17 relevant to A.Y. 2017-18 which is under reopening. The total sales alleged for the entire four years is Rs. 17,84,575/- in case of proprietary concern Shefali Plastoware run by the petitioner HUF. 9. Learned advocate Mr. Divatia also submitted that the impugned reassessment notice as well as the re-assessment proceedings are without jurisdiction and illegal also for the reason that the Respondent has not pointed out any material worth name on the basis of which he may form the belief about the escapement of income for A.Y. 2017-18. It is now a trite law that in order to form belief about the escapement of income by the Respondent, there has to be live link or nexus between the material....
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.... authority after satisfying itself with the reason recorded by the Assessing Officer has accorded approval for issuing notice u/s. 148 of the Act. Hence, it is absurd to say that the approval has been given without application of mind, erroneous and illegal. Further, the case was reopened as per the procedure after recording of satisfaction and taking approval of the competent authority, hence it cannot be said that the case was reopened in mechanical manner. The main ingredient required to issue notice u/s 148 of the L.T. Act, 1961 is to form 'reason to believe'. At the stage of issue of notice u/s 148, the only question is whether there was relevant material on which reasonable person could have form the requisite belief as to ....
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....ategorically submitted by Mr. Patel that particular information pertaining to A.Y. 2017-18 could be from other source as well. It was further submitted that the information for reopening may come from external source or even from material on record. In view of the same, it was submitted that the petition is devoid of merits and, therefore, liable to be dismissed. 12. Having heard learned advocates for the parties and material on record, it is clear that while disposing of the objections made by the petitioner it has been categorically recorded by the respondent that as per the information on record, an amount of Rs. 42,991,65,951/- has escaped assessment and, therefore, the Assessing Officer has rightly invoked the provision of Section 1....