9911796707
TMI Blog2017 (1) TMI 1004X X X X Extracts X X X X X X X X Extracts X X X X ..... ng. On 24th September, 2010, the Petitioner filed its return of income, declaring a loss of Rs. 73.57 lakhs. The return was processed under Section 143(1) of the Act and an intimation was issued on 30th August, 2010. 3. Thereafter, the impugned notice dated 23rd March, 2016 was issued to the Petitioner, seeking to reopen the Assessment for the Assessment Year 2009-10. The reasons in support of the impugned notice reads as under: " The return of income was filed on 24th September, 2010 at a loss of Rs. 73,57,804/. The return was processed under Section 143(1) on 30th September, 2010 accepting the return income and no scrutiny assessment has been carried out u/s. 143(3) in this case. A survey has been conducted by ADIT (Inv.) Unit 1(3), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This essentially on the ground that there is no tangible material for the Assessing Officer to come to a reasonable belief that income chargeable to tax has escaped assessment. By an order dated 28th October, 2016, the Assessing Officer rejected the Petitioner's objection only on the ground that at the time of issuing of the impugned notice, the material in the form of intimation received from ADIT (Inv.), Ahmedabad and the requirement of reason to believe that income chargeable to tax has escaped Assessment is, prima facie, satisfied. The material was the information received from Assistant Director of Income Tax (Inv.), Ahmedabad dated 23rd March, 2016 to the effect that the client code modification had been deliberately misused to sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... without jurisdiction. 7. In response, Mr. Mohanty, learned Counsel appearing for the Revenue submits as under: (a) The reasons recorded indicates that in view of the shift of the profits / losses, the Petitioner had claimed excessive loss to the extent of Rs. 1.96 Crores. This reasonable belief was formed on the material in fact received from the Income Tax Office at Ahmedabad, as annexed to the Affidavit in reply; and (b) The return of income which has been filed has been processed under Section 143(1) of the Act and no assessment under Section 143(3) of the Act has been done. Therefore, the Explanation II (b) to Section 147 of the Act, would apply. It provides that where a return of income has been furnished by the assessee but no ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can have reason to believe that income chargeable to tax has escaped assessment. We find that the communication dated 11th March, 2016 received by the Assessing Officer along with the extract of the survey report as relevant to the Petitioner's case was, in fact, received by the Assessing Officer. This was the material on which he formed a reasonable belief that income chargeable to tax has escaped assessment. Mr. Tiwari contends that on the basis of the data if analyzed, the Assessing Officer could not have any reason to believe that income chargeable to tax has escaped assessment. At this stage, the Assessing Officer on the basis of this analysis of the data has come to a reasonable belief that income chargeable to tax has escaped Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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