9911796707
TMI Blog2004 (2) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioners are challenging the notices both dated June 10, 1997, directing the reopening of the petitioners assessments for the assessment years 1989-90 to 1991-92, respectively, in exercise of powers under section 147 of the Income-tax Act, 1961 ("the Act" for short). The petitioners pursuant to the said notices filed their returns for the respective years without prejudice to their right to challenge the said notices seeking to reopen the concluded assessments for the assessment years 1986-87 to 1989-90 and 1991-92. On being noticed, the respondents appeared and filed their returns and disclosed the reasons recorded prior to the issuance of notices under section 148 of the Act. The reasons are recorded in two sets. In one set reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be satisfied before the respondents can legally assume jurisdiction to issue a notice for reopening concluded assessments. In the submission of learned counsel none of the conditions of section 147 of the Act are satisfied in the present petitions, as such the impugned notices are bad and illegal. Learned counsel for the petitioners while reiterating her above submission went on to amplify the same and submitted that before the proceedings under section 148 can be validly initiated certain pre-conditions which are enumerated hereinafter have to be complied with: (i) the Assessing Officer must have reason to believe that income chargeable to tax has escaped assessment; (ii) such escapement must be on account of a failure on the part of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer must have reason to believe that income chargeable to tax has escaped assessment. She further submits that the grounds or reasons which lead to the formation of the belief contemplated by section 147 must have a material bearing on the question of escapement of income of the assessee from assessment. The expression "reason to believe" does not mean a purely subjective satisfaction on the part of the Assessing Officer. The reasons must be held in good faith and cannot be a mere pretence which is not so in the present case. She reiterates that the belief must be formed on the basis of the relevant material on record and the material relied upon must have some live link and rational nexus with the formation of the belief. She submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Films Ltd. v. Deputy CIT [1998] 234 ITR 170 and ruled that the law that the assessment could not be reopened on a change of opinion was the same before and after the amendment by the Direct Tax Laws (Amendment) Act, 1987. The Supreme Court has upheld the above judgment of the Allahabad High Court in CIT v. Foramer France [2003] 264 ITR 566 in a brief judgment with the words: "We have heard learned counsel for the parties and considered the facts of the case. We see no reason to interfere with the decision of the High Court. Accordingly, the civil appeals are dismissed with costs." Learned counsel for the petitioners also pressed into service the Division Bench of this court in the case of CIT v. Maharashtra Sugar Mills Ltd. [2003] 263 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0-IA were allowed on the basis of similar quality of disclosures made by the petitioners. She further submitted that the assessments for the assessment years, i.e., 1990-91 and 1992-93 have become final and conclusive. The orders passed by the Commissioner of Income-tax (Appeals) for the assessment years 1993-94, 1994-95 and even for subsequent years right up to 1999-2000 have become final and conclusive and for all these years the claims under sections 80HH, 80HHA and 80-I have been allowed. The same are confirmed by the Income-tax Appellate Tribunal. The Revenue did not challenge any of the orders allowing deductions on these counts. If that be so, in the submission of learned counsel, the impugned notices cannot stand the scrutiny of law ..... X X X X Extracts X X X X X X X X Extracts X X X X
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