Case Law Details
Hemjay Construction Co. Pvt. Ltd. Vs ITO (Gujarat High Court)
The issue under consideration is whether the re-opening of the assessment u/s 147 based on information from investigation report is justified in law?
High Court states that having regard to the materials on record it cannot be said that there is a total non-application of mind on the part of the Assessing Officer while recording the reasons for reopening of the assessment. It also cannot be said that his conclusion was merely based on the observations and information received from the Investigation Wing. The Assessing Officer could be said to have applied his mind to the same. The Assessing Officer could not be said to have merely concluded without verifying the facts that it is the case of reopening of the assessment. HC have examined the belief of the Assessing Officer to a limited extent to look into whether there was sufficient material available on record for the Assessing Officer to form a reasonable belief and whether there was a live link existing of the material and the income chargeable to tax that escaped assessment. The case on hand is not one where it could be argued that the Assessing Officer, on absolutely vague or unspecific information, initiated the proceedings of reassessment without taking the pains to form his own belief in respect of such materials. In the overall view of the matter, HC are convinced that no case is made out by the writ applicant for interference. In the result, both the writ applications fail and are hereby rejected.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
1. Since the issues raised in both the captioned writ applications are the same and the parties are also the same, those were heard analogously and are being disposed of by this common judgment and order.
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