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TMI Blog2015 (1) TMI 431X X X X Extracts X X X X X X X X Extracts X X X X ..... hould be held in good faith. - Reason to suspect cannot amount to reason to believe. As it is the beginning of the inquiry, having a prima facie opinion is sufficient; and irrebuttable conclusive evidence or finding is not required. But the prima facie formation of belief should be rational, coherent and not ex facie incorrect and contrary to what is on record. As noticed in paragraph 3 above, the facts recorded are incorrect. Secondly, the reasons must have live nexus and must disclose on what basis or evidence the Assessing Officer feels and has reason to believe that income chargeable has escaped assessment. The reasons must be germane and genuine. For grounds elucidated in paragraph 4 above, this requirement falters. The reasons recorde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5/-. In view of the above facts, I have reason to believe that an income of ₹ 2,55,56,885/- has escaped assessment within the meaning of section 147 of income tax Act, 1961 thereby making it a fit case for issue of notice under section 148 of the income-tax Act, 1961. 2. We have carefully scrutinised and read the said reasons, but are unable to appreciate and comprehend the nexus between the reasons recorded and the conclusion/inference drawn that income had escaped assessment. 3. The Assessment Year in question is 2007-08 and the reasons recorded state that the return filed for the said year was subjected to summary scrutiny and not assessment under Section 143(3) of the Act, which is factually correct. It further states t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had sold the said property and had enclosed the papers including his wealth tax return, house tax notice, valuation report, etc. and also the factum that the property before sale was self occupied. Notice under Section 148 of the Act is dated 27th March, 2012 and was subsequent to the letter dated 21st October, 2011. It is clear that the Assessing Officer assumed facts without even trying to look at the return of income and other papers on record. The aforesaid assumption was a mere suspicion without any foundation or footing and, therefore, nothing more than gossip. It is a case of non-application of mind. 4. The Assessing Officer thereafter has observed that as the land sold was agricultural land, capital gains arising out of the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facie incorrect and contrary to what is on record. As noticed in paragraph 3 above, the facts recorded are incorrect. Secondly, the reasons must have live nexus and must disclose on what basis or evidence the Assessing Officer feels and has reason to believe that income chargeable has escaped assessment. The reasons must be germane and genuine. For grounds elucidated in paragraph 4 above, this requirement falters. The reasons recorded by the Assessing Officer do not meet and satisfy the said basic and limited pre-jurisdictional requirement. There is no rational connection between the reason recorded and the formation of belief that income had escaped assessment. 6. The Tribunal in the impugned order has observed that the Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X
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