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TMI Blog2013 (8) TMI 958X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act, is a pure question of fact that has to be decided based upon an enquiry. It is well settled law that it is for the authorities to lift the veil and ascertain the true nature of transaction that has taken place as between FFIPL and the petitioner., who claim to be sister-organizations, carrying on identical business. It is useful to notice that FFIPL could not make any further claims for deduction under Sec.10B of the Income Tax Act after the period, specified therein, whence the petitioner-company was incorporated and two years thereafter purchased the machinery of FFIPL disclosing the value of the old machinery was less than 20%. It is elsewhere said that tax planning may be legitimate provided it is within the framework of la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he decision in the controversy and the decision or conclusion arrived at to substitute subjectivity with objectivity. It is true that the order of affirmation of the reasons need not be by extracting the reasons elaborately but even then the arguments or submissions made, points urged have to be dealt with if not elaborately, atleast briefly. Regard being had to the only reason assigned in the order Annexure-D being that of extracting Section 147 of the Act and saying that reasons attributed to the invoking of Section 147 are just and reasonable, there is nothing to show application of mind over the elaborate reply made by the petitioner, more appropriately on relevant material as existed during the assessment year 2006-07 which the office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jeans and almost all employees including technical and managerial being shifted from FFIPL to the petitioner-company, coupled with the testimony of one Nagesh, said to be an employee of FFIPL, later an employee of the petitioner, the new undertaking of the petitioner, could not have come into being and therefore petitioner is not entitled to the benefit under Sec.10B of the Income Tax Act. The Deputy Commissioner having regard to several facts as set out in the reasons, as well as in the order impugned, has pointed out to the 'reasons to believe' which are based upon reasonable grounds including direct or circumstantial evidence, but not of mere suspicion, gossip or rumor, which it cannot but be said, the Deputy Commissioner was we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ason to believe' does not mean that the assessing officer should have finally ascertained the fact by legal evidence. It only means, the examination that is required to be made on the basis of information that the assessing officer has received and if he discovers or finds as satisfied that the taxable income has escaped assessment, suffice it to state that he had reason to believe that such income had escaped assessment. 6. The next submission of the learned counsel for the petitioner that job work done by FFIPL for the petitioner, by itself and nothing more, cannot deprive the petitioner from claiming deduction under Sec.10B of the Act, is a pure question of fact that has to be decided based upon an enquiry. It is well settled law ..... X X X X Extracts X X X X X X X X Extracts X X X X
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