2025 (11) TMI 1949

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....adhya Ghosh, Adv. ... for Appellant Mr. Abhratosh Majumdar, Sr. Adv. Mr. Avra Mazumder, Adv. Mr. Kausheyo Roy, Adv. Ms. Alisha Das, Adv. Ms. Elina Dey, Adv. ...for Respondent ORDER The Court: Learned Counsel appearing for the appellant submits that though the involvement of tax in this matter is only Rs. 21 lakhs i.e. much below the threshold limit of Rs. 1 crore as per Circular No. 5 of ....

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....tiating proceedings u/s. 147 of the Act ceases to exist. 5.1. Further, the statute requires that two ingredients are to be satisfied for assuming jurisdiction u/s. 147 of the Act. There should be prima facie "reason to believe" and there must be evidence that "Income has escaped assessment". The failure to satisfy or fulfill these conditions simultaneously would vitiate the entire proceed....

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.... believe" suggest that the belief must be that of an honest and reasonable person based upon reasonable grounds and that the Assessing Officer may act on direct or circumstantial evidence but not on mere suspicion, gossip or rumour. The Ld. AO would be acting without jurisdiction, if the reason for the belief that the conditions required to be satisfied do not exist or is not material or relevant ....

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....ecord any evidence in support thereof and without any independent application of mind on the issue. It is an inalienable principle of law that the reasons recorded u/s. 148 of the Act should be based on credible material which must have a live link or nexus with the belief that there was escapement of income. There should be an independent application of mind on such material before recording the ....