Reopening Reasons to believe must be based on new tangible materials

The assessee argues that the expression “reasons to believe” under Section 147 refers to objective circumstances. In the present case, the assessment was completed under Section 143 (3) after notice was issued under Section 142 (1) was issued and explanation sought in respect of all relevant matters. The assessee could not be faulted for the omission to discuss the materials on record. Learned counsel stressed that “reasons” were to be on the basis of “tangible materials” which must be in possession of the revenue, which alone can result in a valid re-opening. There was no such tan...