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TMI Blog2010 (10) TMI 858X X X X Extracts X X X X X X X X Extracts X X X X ..... rcumstances of the case, the learned Tribunal was justified in holding that the AO had any reason to initiate proceedings under s. 147 of the IT Act, 1961? (ii) Whether on the facts and circumstances of the case, the finding of the learned Tribunal is perverse in nature to the extent that the assessee did not file the balance sheet, trading, P and L a/c and capital account with the original returns filed for asst. yr. 2000-01?" 2. The IT return of the assessee was processed under s. 143(1) and thereafter process of reassessment was initiated, inter alia, on the following grounds:- (i) In the capital account of the assessee, five gifts were received without giving details or filing documents in support thereof. The sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds copy of trading, P and L a/c, capital account and balance sheet relating to asst. yr. 2000-01, which he placed at pp. 3 and 4 of the paper book. After considering the same, we are of the view that these documents, assessee has not filed with original returns. Assessee has filed these documents only at the time of reopening of the present case. As per sale deed for Rs. 4,95,000, which the assessee had sold as alleged by the AO, the AO has not made any addition in the reassessment on this account. As regards to the reasons for reopening the case of the assessee on the ground that the director of the company M/s Bhupindra Flour Mills (P) Ltd., the assessee has neither shown any income from the company nor shown any investment in it. As per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o know or suppose that income has escaped assessment, it can be said to have reason to believe that income had escaped assessment. The reason to believe is mandatory precondition for assuming of jurisdiction under s. 147 of the Act. It has been further held that such 'reason to believe' must necessary to be based on relevant material and that relevant material must be such that a reasonable person on information of such material would have formed a requisite belief that income of the assessee has escaped assessment. In other words, reasonable (sic-reopening) must be based upon reasons, which should be on the basis of new material on record to justify the reason for reopening the case. After considering the facts and circumstances of the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R 220 (P and H); 9. Smt. Kamlesh Sharma vs. B.L. Meena, ITO and Ors. (2006) 205 CTR (Del) 569 : (2006) 287 ITR 337 (Del). 6. We are unable to accept the submission. After amendment of s. 147 w.e.f. 1st April, 1989, reassessment can be initiated even if there is disclosure in the return if without considering the particulars of the return, processing is done under s. 143(1) or assessment is made under s. 143(3). No doubt, mere change of opinion by itself is not a ground for reassessment as held in the judgments relied upon on behalf of the assessee but if there are reasons to believe that tax has escaped, reassessment is permissible. Reasons can be even on the basis of particulars of the return without any new material. Even ..... X X X X Extracts X X X X X X X X Extracts X X X X
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