Case Law Details
Agfa India (P) Ltd. Vs. Asst. CIT (ITAT Pune)
‘Reason to believe’ that income chargeable to tax has escaped assessment should be of assessing officer. It is assessing officer’s ‘reason to believe’ that taxable income has escaped assessment that forms bedrock for reopening assessment under section 147 of the Act. Directions from JCIT or CIT to issue notice cannot in any manner be construed as assessing officer’s ‘reason to believe’ for initiating reassessment proceedings. The provisions of section 147 in unambiguous terms mandates that the ‘reason to believe’ for reopening assessment should be of assessing officer. In other words the assessing officer should carryout independent exercise to examine fresh material in his possession to come to a conclusion that the assessment warrants reopening on account of escapement of income. In the present case, a perusal of reasons for initiating reassessment proceedings clearly show that they are against the sprit of provisions of section 147 of the Act. The assessing officer has issued notice under section 148 on the directions of JCIT and CIT. Therefore, in our considered opinion the notice issued under section 148 is bad in law and thus, the subsequent proceedings arising there from are vitiated.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
This appeal by the assessee is directed against the order of Commissioner (Appeals)-I, Thane dated 30-4-2015 for the assessment year 2007-08.
2. The assessee has assailed the order of Commissioner (Appeals) by raising following grounds in appeal :–
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