Reassessment Notice U/s. 148 merely on directions from JCIT or CIT is invalid

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 a...