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TMI BlogReopening of assessment u/s 147 - reason to believeX X X X Extracts X X X X X X X X Extracts X X X X ..... nto account various observations of the High Courts and Supreme Court. In this connection attention is invited to Board's letters F.No. 64/21/67-IT(inv.) dated 21.1.1967, F.No.5/229/69-IT(Inv.) dated 27.10.1969 and F.No. 289/66/71-IT(Inv.) dated 12.1.1972. Inspite of these instructions it is seen that proposals for reopening assessments received by the Board from the Commissioners do not sometimes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ared that certain creditors were name lenders and the loan transactions were bogus and that therefore proper investigation regarding the loans taken by the assessee was necessary. He did not mention in the report the material he had before him and his reason for coming to the conclusion that this was fit case for issuing notice u/s. 148. On this report the Commissioner, against the question "wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the truth of the alleged transactions was not the same thing as saying that there were reasons for the issue of the notice. The Commissioner had mechanically accorded permission. The important safeguards provided in sections 147 and 151 were lightly treated by the Officer and the Commissioner. The Income-tax Officer could not have had reason to believe that income had escaped assessment by reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sents income which has escaped assessment". The Supreme Court's observations in this case were as follows:- "The two reasons given for the belief formed by the I.T.O. hopelessly failed to satisfy the requirements of section 34(IA). The so-called reasons were stated to be beliefs thus leading to an obvious self-contradiction. There was no material or fact which had been stated on which any beli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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