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TMI Blog2014 (10) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... on of proceeding under section 147 on the ground that the notices were issued beyond four years without mentioning in the reason recorded by the assessing authority that there was failure on the part of the asessee to disclose fully and truly all material facts necessary for the assessment, as such the notice under section 148 is not valid?" We find that the return of income was furnished by the assessee on 31.10.2001 and the assessment was framed by the Assessing Officer under Section 143(3) of the Income Tax Act on 18.03.2004. The notice under Section 148 of the Income Tax Act, was issued by the Assessing Officer on 31.03.2007 after a period of four years from the end of the relevant assessment year. In the said notice, the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levant and have a bearing on the matters in regard to which he is required to entertain the belief before he can issue notice under section 147 (a). It there is no rational and intelligible nexus between the reasons and the belief, so that, on such reasons, no one properly instructed on facts and law could reasonably entertain the belief, the conclusion would be inescapable that the Income Tax Officer could not have reason to believe that any part of the income of the assessee had escaped assessment and such escapement was by reason of the omission or failure on the part of the assessee to disclose fully and truly all material facts and the notice issued by him would be liable to he struck down as invalid." In Phool Chand Bajrang Lal and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. To that limited extent, the Court may look into the conclusion arrived at by the Income-tax Officer and examine whether there was any material available on the record from which the requisite belief could be formed by the Income-tax Officer and further whether that material had any rational connection or a live link for the formation of the requisite belief. It would be immaterial whether the Income-tax Officer at the time of making the original assessment could or, could not have found by further enquiry or investigation, whether the transaction was genuine or not, if one the basis of subsequent information, the Income-tax Officer arrives at a conclusion, after satisfying the twin conditions prescribed in Section 147(a) of the Act, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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