2016 (4) TMI 257

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..... to believe that the income chargeable to tax has escaped assessment and not an irrefutable conclusion that it is so. The material which has been received by the Assessing Officer as mentioned in the reasons recorded in the context of the claim made by the Petitioner would indicate that a reasonable person is likely to have a reasonable belief that the income chargeable to tax has escaped assessment. At the stage of a challenge to a reopening notice issued under Section 148 of the Act, this Court is not concerned with the sufficiency of the reasons nor the correctness of the reasons (Raymond Woollen Mills V/s. ITO - 1997 (12) TMI 12 - SUPREME Court). However, we find that reasons do indicate a basis for the Assessing Officer to come to a re .....

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..... ies and Finstock Ltd. subsequently sold the said shares to one M/s Coroa Investments P. Ltd. at ₹ 11/- per share only. In view of the information as aforesaid, the authenticity of this transaction and the claim of revenue expense amounting to ₹ 40,00,00,000/- are seen to be nongenuine in nature. In view of the same, I have reason to believe that income chargeable to tax amounting to ₹ 40,00,00,000/- as aforesaid has escaped assessment for A.Y. 2011-12 in term of Section 147 of the Income Tax Act, 1961, and the same is required to be brought to tax as well as any other income which may be found to have escaped assessment as per Explanation 3 to Section 147 of the I.T. Act, 1961. Notice under Section 148 of .....

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..... ioner would indicate that a reasonable person is likely to have a reasonable belief that the income chargeable to tax has escaped assessment. At the stage of a challenge to a reopening notice issued under Section 148 of the Act, this Court is not concerned with the sufficiency of the reasons nor the correctness of the reasons (Raymond Woollen Mills V/s. ITO 256 ITR 34). However, we find that reasons do indicate a basis for the Assessing Officer to come to a reasonable belief on the basis of the information received that income chargeable to tax has escaped assessment. Thus we see no reason to exercise extra ordinary writ jurisdiction in the present facts. 5. Needless to state that it would be open to the Petitioner to challenge the reaso .....

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