2012 (7) TMI 801 - HC - Income Tax

Challenge the reassessment orders - Held that - AO had recorded detailed reasons in order to arrive at the conclusion that provisions of section 68 are applicable and thus resulted in escapement of income and there is nexus between the specific information and reasons recorded by the AO. Therefore AO is justified in reopening the assessment - no substantial question of law arises for consideration

Summary

Issues:
1. Challenge to the decision of the Income Tax Appellate Tribunal regarding the reassessment under Section 148.
2. Allegation of flawed satisfaction recorded by the authority under Section 148.
3. Question of whether the assessing officer applied his mind as warranted by Section 148.
4. Tribunal's reasoning in allowing the Revenue's appeals based on detailed reasons recorded by the assessing officer.

Analysis:
1. The appellant contested the Income Tax Appellate Tribunal's decision in ITA No. 3642(Del)/2011, challenging the setting aside of reassessment by the CIT (A) due to improper assumption of jurisdiction under Section 148. The Tribunal allowed the Revenue's appeal based on detailed reasons recorded by the assessing officer.

2. The appellant argued that the satisfaction recorded under Section 148 was flawed, alleging complete non-application of mind by the concerned officer. It was contended that the officer did not consider the Assessee's previously filed returns, indicating a lack of proper assessment.

3. The appellant's counsel emphasized the need for the assessing officer to apply his mind as required by Section 148. The Tribunal and CIT (A) reasoning were reviewed, raising the substantial question of whether there was a proper application of mind by the AO in the given circumstances.

4. The Tribunal's reasoning for allowing the Revenue's appeals was based on a detailed analysis of the reasons recorded by the assessing officer. The Tribunal highlighted the exhaustive nature of the reasons, indicating a thorough consideration of the information received from the Investigation Wing. The Tribunal upheld the reopening of the assessment, emphasizing the nexus between the specific information and the reasons recorded by the assessing officer.

5. The High Court dismissed the appeal, stating that the concerned officer did consider the relevant materials while forming the prima facie opinion for reassessment under Section 148. The Court found no substantial question of law arising from the factual appreciation of the materials, leading to the dismissal of the appeal.