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TMI Blog2013 (11) TMI 1447X X X X Extracts X X X X X X X X Extracts X X X X ..... d to issue notice on the application for condonation of delay. 3. The assessee had filed return for the assessment year 2000-01 on 30.11.2000 declaring income of Rs.2860/-. The return was processed under Section 143(1) of the Act and no regular assessment order under Section 143(3) was passed. Re-assessment proceedings were initiated by issue of noticed dated 26.3.2007 under Section 148 of the Act. The reasons to believe as recorded by the assessing officer are as under:- "The reasons for issuing Notice u/s148 is as under: As per information received the office of the Directorate of Income Tax (Investigation-I) vide letter dated 02.03.2006, M/s Funny Time Finvest (P) Ltd. received 3 accommodation entries of Rs.1.5 lac vide Ch. No. 672360 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax (Appeals) on merits of the addition. The Commissioner of Income Tax (Appeals) on the issue of initiation of re- assessment under Section 148/147 had reached the following findings: "The facts of the present case are that the AO had received specific information from the specialized wing of the Department, DIT(Inv). The nature of information was specific and the AO had reasons to believe that income has escaped assessment. The Hon'ble ITAT, G-Benth Delhi has also followed the above judgments in its decision vide ITA No. 2907/Del/2007 dated 3/10/2008. It is been held that under similar circumstances, if a live link stands established between any company providing accommodation entries and the assessee (Being one of the beneficiaries), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to regular assessment order under section 143(3) and the return was merely processed under Section 143(1). Supreme Court in the case of Assistant Commissioner of Income Tax v. Rajesh Jhaveri Stock Brokers; [2008] 14 SCC 208 has drawn distinction in cases where regular assessment orders have been passed under Section 143(3) and a case where only communication is sent under Section 143(1) with the following observations:- "13. While making an assessment, the assessing officer is free to make any addition after grant of opportunity to the assessee. By making adjustments under the first proviso to Section 143(1) (a), no addition which is impermissible by the information given in the return could be made by the assessing officer. The reason is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n ''reason to believe'' used in the said Section. The Assessing Officer must have ''reason to believe'' that an income chargeable to tax has escaped assessment. This is mandatory and the ''reasons to believe'' are required to be recorded in writing by the Assessing Officer. Sufficiency of reasons is not a matter, which is to be decided by the writ court, but existence of belief is the subject matter of the scrutiny. A notice under Section 148 can be quashed if the ''belief'' is not bona fide, or one based on vague, irrelevant and non-specific information. The basis of the belief should be discernible from the material on record, which was available with the Assessing Officer, when he recorded the reason. There should be a link between the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer. In case, the assessee wanted to challenge and question that the information received from the Directorate of Income Tax vide letter dated 2.3.2006 as not specific or vague, such plea or contention should have been raised before the Tribunal. The nature and character, what was contained and formed part of the information is primarily factual. We cannot and should not go into the said factual aspect at this stage, once the said issue was not raised before the Tribunal. 11. The decision in the case of Pradeep Kumar Gupta and Ors. (Supra) is on an appeal under Section 260A and raised the issue whether the addition on merits was justified when the revenue did not produce persons for cross- examination inspite of specific demand. This aspe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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