9911796707
TMI Blog2013 (10) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... t year and, therefore, the additional requirement mentioned in the first proviso to Section 147 is not required to be satisfied. 2. The petitioner had filed return of income for the Assessment Year 2006-07 on 28th November, 2006 declaring "nil" income under the normal provisions and Rs.3,15,36,278/- under Section 115JB of the Income Tax Act, 1961 (Act, for short). The assessment order under Section 143(3) read with Section 144C of the Act was passed on 14th December, 2009 making several additions. We are not concerned with the said additions, but state that the total income was assessed at Rs.39,67,07,990/- under the normal provisions. 3. As noticed above, subsequently the Assessing Officer recorded reasons to believe and issued reassessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Rs.3,35,58,280/-) from M/s Canon Inc. Japan in Financial Year 2005-06 relevant to the Assessment Year 2006-07. The reasons to believe further records that the income tax return for the Assessment Year 2006-07, which had resulted in the regular assessment order dated 30th August, 2010 did not take into consideration receipt of the said sum. It is specifically recorded that the petitioner had not disclosed this amount in the return of income for Assessment Year 2006-07 and, therefore, the Assessing Officer had reason to believe that income chargeable to tax had escaped assessment. 6. The respondent, it is apparent, had received information from the tax authorities in Japan about deduction of tax at source by Canon Inc. Japan on funds, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, we are further checking our records and in the meantime, request your goodself to kindly provide more details/information in relation to the same." 7. The said reply, as noticed above, was given on 16th February, 2011. Thereafter, the petitioner did not correspond nor furnished details or information till notice under Section 148 dated 24th March, 2011 was issued by the Assessing Officer of the petitioner from Delhi. It is apparent that the Investigation Wing at Gurgaon had communicated these details to the Assessing Officer, who then examined the same and recorded the reasons to believe mentioned above. 8. The contention of the petitioner is that after notice was received, they have been able to reconcile their records and have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... face reassessment proceedings. This is true and correct but as already noted above, to a large extent the assessee himself is responsible for the present situation as they did not furnish the requisite details in spite of the letter of the Investigation Wing of the Department. Reasons to believe have to be recorded by the Assessing Officer before notice is issued. The facts and averments made in the „reasons to believe‟ have to be tested on the basis of facts and information available with the Assessing Officer on the said date. Reasons to believe cannot be substituted or altered. They form the foundation of the jurisdiction of the Assessing Officer, who initiates reassessment proceedings. At that stage, only a prima facie or te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t would be fallacious and wrong to allow the said reassessment proceedings to continue as a mere formality. In the present case, there is a factual dispute whether or not Japanese Yen 8,99,92,707 were included in the receipts for the Assessment Year 2005-06. The said factual assertion made by the petitioner has not been examined or affirmed or denied. As far as Assessment Year 2006-07 is concerned, the petitioner admits that this amount was not shown in the return or as income. The Assessing Officer has proceeded on the basis of investigation made, relying upon communications exchanged between the Investigation Wing of the Department at Gurgaon and the petitioner-assessee. He did not have benefit of the letter dated 28th March, 2011 written ..... X X X X Extracts X X X X X X X X Extracts X X X X
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