Reason To Believe - Indian Laws - General

Reason To Believe The expression Reason To Believe has been interpreted by the Court to mean that even though formation of opinion may be subjective but it must be based on material on the record. It cannot be arbitrary, capricious or whimsical. ( N Nagendra rao co. vs State of AP 1994 (9) TMI 316 - Supreme court ) The expression Reason To Believe does not mean a purely subjective satisfaction on the part of the Income-tax Officer. The reason must be held in good faith. It cannot be merely a pretence. It is open to the court to examine whether the reasons for the formation of the belief have a rational connection with or a relevant bearing on the formation of the belief and are not extraneous or irrelevant for the purpose of the section. (Lakhmani mewal das - 1976 (3) TMI 1 - SUPREME COURT)