No valid belief can be formed on the basis of incorrect/non-existing facts

Prithvi Raj Singh Vs I.T.O. (ITAT Jaipur) We found that the assessee had declared capital gain income in return which clearly shows that there is non-application of mind on the part of the A.O. while recording the reasons as he did not consider the return furnished by the assessee wherein capital gain income has been shown. Thus, non­existing facts/basis does not lead to formation of belief U/s 147 of the Act which is a condition precedent U/s 147 of the Act as there is no rational nexus of material/information available with formation of belief. Thus, according to us, no valid belief can be ...