9911796707
TMI Blog2012 (7) TMI 523X X X X Extracts X X X X X X X X Extracts X X X X ..... and as per Explanation 2(a) to Section 47 non-filing of return under certain circumstances could itself led to inference of escaped income - once the AO was satisfied about the income escapement no further investigation as to what was the ground for the assessee to have not filed the return. Therefore, the Tribunal ought not to have set-aside the assessment and penalty order in this case on such narrow reasoning - matter is remitted back to the Tribunal to consider the reassessment and the penalty appeals - against assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on 27.10.2004 as enclosed is an letter from Mr. Vivek Nagpal as director. As per the business purchase agreement, the Assessee M/s. Shonkh Technologies Limited did business upto 15.07.2000 and, has transferred its entire business undertaking for a consideration of Rs.110,25,64,745/- (Rupees one hundred ten crore twenty five lakhs sixty four thousand seven hundred forty five). The assessee should have admitted this receipt in its return of income and, should have paid the tax due under relevant provisions of the Income Tax Act. Therefore, I have reasons to believe that income chargeable to tax has escaped agreement for the assessment year 2001-02 on account of the assessee to make a return admitting the above transactions and making the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed about the escapement of income of the assessee company. There was nothing in the said reasons to show existence of any positive income arising to the assessee company which was assessable in his hands and the belief entertained by the AO was based merely on assumption and surmises. The reasons recorded by him do not show the process of reasoning which could lead to reason to believe that any income of the assessee company chargeable to tax for the year under consideration had escaped assessment. If all these facts of the present case are considered in the light of principles laid down in the various judicial pronouncements discussed above, we are of the view that the mandatory conditions for assuming jurisdiction u/s 147 were not satisfi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cess of Rs.100 crores as consideration for transfer of business to one M/s. Sreejee Yatayat Ltd. The reasoning of the Tribunal was not justified because Explanation 2(a) to Section 47 provides that non-filing of return under certain circumstances could itself led to inference of escaped income. The Tribunal was conscious of that provision; yet it proceeded to take an extremely narrow view of the facts of this case and set an impossibly high threshold upon the Assessing Officer. Once the Assessing Officer was satisfied - as indeed evidenced from the reasons recorded on 28.10.2004 - that no return had been filed for the relevant year and further a substantial amount had been received by the assessee, there could have been no further investiga ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
