TaxTMI 
TaxTMI 
1984 (5) TMI 71
X X X X Extracts X X X X
X X X X Extracts X X X X
....bay that the assessee had allegedly paid "on money" of Rs. 1,19,048 to Madhav Co-op. Housing Society Ltd. for the purchase of two flats No. H 4 in "Helio Polio" and P 6 in "Petro Polio" from them through an agent. Thereupon, the ITO reopened the assessment under s. 147(b) r/w s. 148 of the IT Act, 1961. In response to the notice under s. 148, the assessee again declared the loss of Rs. 2,878 and s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and that the ITO despite a specific opportunity to him, could not refer to or produce any material to show that he had recorded his "reasons" for reopening the assessment and so the reassessment was void. (ii) That there was no information on the basis of which it could be said that the ITO could come to a reasonable conclusion that the income of the assessee had escaped assessment so as to just....
X X X X Extracts X X X X
X X X X Extracts X X X X
....doing so. Now, in the present case, there is no material on the record to prove that the ITO in fact, recorded his reasons before issuing the notice under s. 148(1) for reopening the assessment. The CIT(A) has clearly observed in his order that he went through the record of the ITO but did not find any entry in the order sheet, showing the reasons recorded by the ITO before issuing the notice unde....
X X X X Extracts X X X X
X X X X Extracts X X X X
....O & Ors. (1968) 69 ITR 461 (All) that the recording of reasons before issuing the notice under s. 148 is mandatory and pre-requisite to the assumption of jurisdiction by the ITO for initiating proceeding for assessing or reassessing income which has escaped assessment. To the same effect is the decision of the Calcutta High Court in the case of East Coast Commercial Co. Ltd. vs. ITO & Ors. (1981) ....