9911796707
TMI Blog2004 (7) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... stones were presented as gift on the occasion of the marriage of the assessee's daughters and the amounts of Rs. 7,000 and Rs. 1,500 per year were the personal drawings and the commission on purchase and sale of semi-precious and precious stones respectively. - Since the issue whether there were materials for the appellant/Revenue to invoke section 147 are sufficient, bona fide, definite, relevant and reliable is purely a matter of fact, finding no substantial question of law, the appeals are dismissed. - - - - - Dated:- 21-7-2004 - Judge(s) : P. D. DINAKARAN., N. KANNADASAN. JUDGMENT The judgment of the court was delivered by P.D. Dinakaran J. - Heard. The appeal is preferred against the order of the Income-tax Appellate Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchase and sale of semi-precious and precious stones respectively. After considering the evidence relied on by the assessee, the Assessing Officer completed the assessments with a total income of Rs. 60,830, Rs. 97,410, Rs. 70,430 and Rs. 37,313, respectively, for the assessment years 1972-73, 1973-74, 1974-75 and 1977-78. Aggrieved by the said assessment order, the assessee preferred an appeal before the Deputy Commissioner of Income-tax (Appeals), who confirmed the above assessment by an order dated November 12, 1997, against which a further appeal was preferred by the assessee before the Income-tax Appellate Tribunal. By an order dated May 21, 2003, the Tribunal held that the Assessing Officer failed to establish that there were reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income-tax Act for reassessing the case held that sufficiency of the material relied on by the Revenue is not relevant, inasmuch as, the same cannot be a criteria for the purpose of reopening the assessment under section 147 of the Income-tax Act. But, the apex court in the very same case also held that for the purpose of reopening the assessment, what is required to be seen is whether there were prima facie materials on the basis of which the Department could reopen the case even though the sufficiency of the material is not a thing to be considered at that stage. It is trite law that the subsequent information based on which the reassessment was proposed should be definite, specific, relevant and reliable and then only such material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aring on the formation of the belief. Rational connection postulates that there must be a direct nexus or live link between the material coming to the notice of the Income-tax Officer and the formation of his belief that there has been escapement of the income of the assessee from assessment in the particular year because of his failure to disclose fully and truly all material facts. . . . The powers of the Income-tax Officer to reopen assessment, though wide, are not plenary. The words of the statute are 'reason to believe' and not 'reason to suspect'. The reopening of the assessment after the lapse of many years is a serious matter. The Act, no doubt, contemplates the reopening of the assessment if grounds exist for believing that incom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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