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TMI Blog2017 (1) TMI 1004X X X X Extracts X X X X X X X X Extracts X X X X ..... subjective view which is not shown to be perverse. Therefore, the challenge to the above belief on the basis of the data could be made by the Assessing Officer at the time of hearing before the authorities under the Act. Thus, establishing that no amounts are to be added to declared the income. Absence of income chargeable to tax escaping Assessment we find that it is undisputed position that no Assessment Order under Section 143(3) of the Act was passed. This is admittedly only a case of an intimation under Section 143(1) of the Act. Therefore, ExplanationII (b) of Section 147 of the Act would apply and it would be a deemed that income chargeable to tax has escaped Assessment as the examination by the Assessing Officer of the informatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th September, 2010 at a loss of ₹ 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), Ahmedabad on 23.03.2015 across India at the premises of 12 brokers and few of their clients. The Survey report has been mailed to the undersigned on 11.03.2016 wherein the names of the beneficiaries have been mentioned. Out of those beneficiaries, one of the assesssee i.e. M/s. Dindayal Commodities Pvt. Ltd., is assessed in this charge. On going through the survey report, it is seen that the above mentioned assessee had reduced its income due to client cod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 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 shift profit/losses for the benefit of the Petitioner. 5. On receipt of the order dated 28th October, 2016, rejecting the objections, the Petitioner filed this Petition. The basis is that the impugned notice seeking to reopen an assessment is, without jurisdiction. It i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f ₹ 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 assessment has been made and it is noticed by the Assessing Officer that the assessee has understated the income or has claimed excessive loss then it is deemed to be a case where income chargeable to tax has escaped assessment. 8. It is a settled pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Assessment. This view/ belief on the part of the Assessing Officer is his subjective view which is not shown to be perverse. Therefore, the challenge to the above belief on the basis of the data could be made by the Assessing Officer at the time of h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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