9911796707
TMI Blog1989 (12) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... converted by ITO to this amount of Rs. 12,668) 2. In its appeal filed before the CIT(A) the assessee had challenged the validity of the proceedings under s. 147 and had also denied any such transactions. Not having met with any success before the CIT(A), the assessee is in appeal before us. Again before us, the learned counsel for the assessee Shri N.M. Ranka has vehemently challenged the validity of the proceedings under s. 147 (a) on the basis of which this assessment has been framed. He argued that in the first instance no valid reasons were recovered by the ITO for initiating these proceedings and this was brought to the notice of the ITO vide assessee s letter dated 14th Feb., 1985 filed before the ITO. Secondly, he asserted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ITO was required to apply his mind and then decide the issue. He claimed that in case, according to his information even the "legalised document" regarding Sales S.A. from Switzerland were not with the Department and the assessee had not been provided with the copies of that account whereas in some other cases of this type of example in the case of H.C. BADER s vs. ITO (1989) 34 TTJ (Jp) 574 and VIMAL CHAND GOLECHA vs. ITO (1981) 25 CTR (Raj) 175 : (1982) 134 ITR 119 (Raj) and several other cases the assessee had atleast been provided with copies of whatever papers the department had in its possession but in the instant case even a copy was not provided to the assessee. According to the learned counsel an assessment based on evidence coll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sanction for reopening this assessment was one transaction amounting to Swiss $ 6450 on 14th Nov., 1970. No other transaction was mentioned for reopening the assessment. It is only during the course of assessment proceedings that the ITO found that there is another transaction amounting to Swiss $ 3166.95 on 1st Jan., 1972, which is relevant for this year and hence the equivalent of this amount has been added to assessee s income whereas the amount of Swiss $ 6450 has been altogether ignored. The question is whether the ITO would be justified in reopening an assessment on any ground whether it is relevant to a particular assessment year or not and whether thereafter he can justify an assessment by ignoring that ground and adding some other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scapement of the income of the assessee from assessment in the particular year because of his failure to disclose fully and trully all material facts. It is no doubt true that the court cannot go into the sufficiency or adequacy of the material and substitute its own opinion for that of the ITO on the point as to whether action should be initiated for reopening assessment. At same time we have to bear in mind that it is not any and every material, howsoever vague and indefinite or distant, remote and far-fetched, which would warrant the formation of the belief relating to escapement of the income of the assessee from assessment. The fact that the words "definite information" which were there is s. 34 of the Act of 1922, at one time before i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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