9911796707
TMI Blog1978 (9) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... rcumstances. The assessee's assessment under rule 41(5) was completed. At that time, the Sales Tax Officer had received information from an informer that the assessee had imported kerosene oil. He, however, did not act on this information and accepted the affidavit filed by the assessee's authorised representative that during the assessment year 1963-64 all the purchases of kerosene oil had be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can form the basis for a valid notice under section 21. The relevant part of section 21 runs: "If the assessing authority has reason to believe that the whole or any part of the turnover of a dealer...... has escaped assessment to tax..........." It is settled that before an assessment under section 21 can be made it has to be preceded by a valid notice. A notice under section 21, as is obv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a[1971] 82 I.T.R. 367 (S.C.)., and that of the Calcutta High Court in the case of Diamond Sugar Mills Ltd. v. Income-tax Officer, West Bengal[1973] 89 I.T.R. 171. These cases decided under the Income-tax Act undoubtedly lay down that the information on the basis of which an Income-tax Officer can reopen an assessment under section 34 of the Act must have come into his possession subsequent to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ans that the belief must be of a reasonable and a prudent man. It must be based on some relevant material, and not based on suspicion, gossip or rumour. See Sheo Nath Singh v. Appellate Assistant Commissioner of Income-tax, Calcutta[1971] 82 I.T.R. 147 (S.C.). and Chhugamal Rajpal v. S.P. Chaliha[1971] 79 I.T.R. 603 (S.C.). These cases arose under the Income-tax Act, but the material provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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