9911796707
TMI Blog2008 (1) TMI 907X X X X Extracts X X X X X X X X Extracts X X X X ..... states a fact that an objection has been raised. There is nothing to suggest from the language of the note that the AO had applied his mind to the contents of the audit objection before issuing a notice u/s 148 of the Act. On the contrary, the note suggests that the notice was issued mechanically as a result of the audit objection. We find that there is no independent application of mind by the AO for the purposes of issuing a notice under section 148 of the Act. In our opinion, no substantial question of law arises - Appeal is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... al liability has arisen and taking credit of all receipts that have become due regardless of their actual receipt. The omission to do so resulted in excess allowance of 1/5th for repair amounting to ₹ 10,49,417 as above pertaining to prior period expenses which were not to be allowed during the period under consideration. In view of the assessment finalized it is apparent, the excess relief has been allowed and under assessment of income of ₹ 10,49,417 involving potential tax effect of ₹ 8,01,335. On the basis of the facts above I have reasons to believe that the income chargeable to tax of ₹ 10,49,417 has escaped assessment for the assessment year 1995-96 and, accordingly, notice under section 148, read with sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the audit party in its report and it is only thereafter, that the Assessing Officer must come to an independent conclusion that there was an escapement of income. 8. Insofar as the present case is concerned, there is nothing to suggest anything in the reasons or note recorded by the Assessing Officer that there is an independent examination of the material collected by the audit party nor is there any independent conclusion arrived at by the Assessing Officer. In fact, as noted above, the reasons itself do not make any reference to the objection of the audit but it is only the note that makes a reference - and the note merely states a fact that an objection has been raised. There is nothing to suggest from the language of the note that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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