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TMI Blog1985 (8) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... s made consequent to such proceedings is less than Rs. 50,000. According to Mr. S.S. Ruhela, the learned departmental representative, the reading of the provision of section 149(1)(a)(ii) is indicative of the fact that at the time when the notice is being sought to be issued the ITO should be of a view that the income that has escaped assessment amounts to or is likely to amount to Rs. 50,000 or more for that year. According to Mr. S.S. Ruhela, the ITO is acting on certain belief which has been formed itselves on same basis and the belief in the instant case was formed on the basis of certain information and material. The reasons that are recorded have been sent to the Board for approval which was received and after which only the notices w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material for the purpose of reopening the amount of income that has escaped assessment and that assessed could be different. He further submitted that even examination of the material it would only reveal that it was as a consequence of a search that was conducted very much later. He referred to the assessment order and submitted that the raid was done sometime in 1977. He also referred to the assessment order and submitted that the income that is added is less than Rs. 50,000. Mr. Ranka then submitted if the intention of the Legislature was to allow the ITO to apply the provision of section 149(1)(a)(ii) even in case where the income escaped assessment was less than Rs. 50,000 then there was no necessity of providing section 149(1)(a)(i) w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are clearly indicative of the fact that the material which is in the possession of the ITO on which he has made this belief must lead to the conclusion that the income that he is proposing to include which according to him has escaped assessment should be Rs. 50,000 or more, as the word 'like' means identical, equal or nearly equal in all respects. In order to apply sub-clause (ii) the ITO must at the time of initiation satisfy both the conditions, i.e., income that has escaped assessment and the amount of such escapement of income is Rs. 50,000 or more. The Kerala High Court in the case of P.K. Nair v. ITO [1973] 90 ITR 512 has clearly held that the provisions of section 149(1)(a)(ii) could be applied only if at the time of formation of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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