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TMI Blog2017 (1) TMI 1040X X X X Extracts X X X X X X X X Extracts X X X X ..... y coming into the account of the assessee by way of diverse transactions. On basis of such information, he had applied his mind and formed an opinion that he should undertake an exercise under Section 148. He has explained his stand after the objections were raised on behalf of the assessee. In the order dated August 5, 2016 while disposing of the objections the assessing officer has stated that, during the verification of a report of suspicious transaction, it was found that, huge unaccounted cash deposit made in the bank account of individual person of a concerned bank and the deposited cash of such bank account was finally transferred by issued cheque routed through various companies to the assessee and other beneficiaries during rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an income escaping assessment on the materials made available to him. Since such materials are available he ought not to have invoked Section 148. In support of the contention that the assessing officer is required to form an opinion for the purpose of invoking Section 148 of the Act of 1961 and nature and extent of the opinion required to be formed, learned advocate for the petitioner relies upon 329 ITR 110 (Sarthak Securities Co. (P.) Ltd. vs. Income-tax Officer-Ward 7(3), 299 ITR 383 (Commissioner of Income-tax vs. Atul Jain) and 79 ITR 603 (Chhugamal Rajpal vs. S.P. Chaliha). Learned advocate for the petitioner refers to the reasons for invocation of Section 148 and to the objections raised by the petitioner with regard thereto a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g officer in the present case seeks to invoke under Section 148 after four years from the relevant date of the assessment. The assessing officer has forwarded the reasons for invoking Section 148 to the assessee. The reasons speak of a suspicious transaction. It specifies that, the assessee had allegedly received a fund of ₹ 2.20 crores approximately either in individual or current account or proprietorship account maintained with an identified bank. It speaks of transactions by which the assessee has transferred the management of the assessee company in favour of a new management. It speaks of sale of shares of the assessee company. It speaks of the sale of shares being in cash and, therefore, an income has escaped assessment. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f prudence, which a reasonable person is required to apply. Chhugamal Rajpal (supra) holds that, when a notice under Section 148 is not specific, it is required to be set aside. In the present case on receipt of information that, a suspicious transaction of ₹ 2.20 crores had happened in respect of the account of the assessee for the relevant financial year, the assessing officer had undertaken the exercise of issuance of notice under Section 148 of the Act of 1961. It appears from the material made available on record that, the assessing officer had applied his mind to the materials placed before him before issuance of the notice under Section 148. He was informed of a suspicious transaction which had resulted in a sum of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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