Reassessment valid as AO formed prima facie opinion for escapement of income

Electrotherm (India) Ltd. Vs DCIT (ITAT Ahmedabad) Conclusion:  Since AO after applying his mind on information received from VAT Department arrived at the conclusion, based on the reasons to believe that income of assessee had escaped assessment. and at the time of issuing notice under section 148 AO had formed prima facie opinion for escapement of income, therefore, reassessment was sustained as valid. Held: AO received information from VAT Department that the bogus sale was made by certain entities after charging commission @ 0.05% from assessee. In-fact these impugned entities were not in...