9911796707
TMI Blog2016 (8) TMI 1323X X X X Extracts X X X X X X X X Extracts X X X X ..... learned Single Judge was not satisfied that the order for re-assessment was sustainable and yet dismissed the writ petition only on the ground for availability of alternative remedy by way of first appeal and second appeal under the Act against any fresh orders passed in re-assessment. The order under appeal dated 15th February 2016 declining interference with the notice for re-assessment on the ground of availability of alternative remedy only is, therefore, held to be not sustainable. The notice for re-assessment is therefore set aside. X X X X Extracts X X X X X X X X Extracts X X X X ..... was discovered or surfaced subsequently. Mere rhetorical repetition of words of the statute in the notice dated 27th March 2015 of reason to believe that income had escaped the assessment will not vest jurisdiction in the Assessing Authority to re-open the assessment. The reasoned order for reassessment discloses that there was no fresh material for reason to believe or that the assessee had failed to disclose true and material facts, leading to income escaping assessment. The assessment was sought o be reopened on basis of the same materials apparent from the recitals "on examination of the assessment record, it is found ...". Reliance was placed on (1961) 41 ITR 191 (Calcutta Discount Co. Ltd. v. Income-tax Officer, Companies District-I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollows: "To confer jurisdiction under this section to issue notice in respect of assessments beyond the period of four years, but within a period of eight years, from the end of the relevant year two conditions have therefore to be satisfied. The first is that the Income-tax Officer must have reason to believe that income, profits or gains chargeable to income- tax have been underassessed. The second is that he must have also reason to believe that such " under assessment " has occurred by reason of either (i) omission or failure on the part of an assessee to make a return of his income under s. 22, or (ii) omission or failure on the part of an assessee to disclose fully and truly all material facts necessary for his assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereon were produced. In his report, the Income Tax Officer referred to some communications received by him from the Commissioner of Income-Tax, Bihar and Orissa from which it appeared that certain creditors of the assessee were mere name-lenders and the loan transactions were bogus and, therefore, proper investigation regarding the loans was necessary. It was observed that the Income Tax Officer had not set out any reason for coming to the conclusion that it was a fit case for issuing a notice under Section 148 of the Income Tax Act, 1961. The material that he had before him for issuing notice had not been mentioned. The facts contained in the communications which had been received were only referred to vaguely and all that had been said w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unsuccessfully before the Tribunal. Not satisfied with the same, the respondent then filed an application under Section 154 of the Act for re-consideration of the order, which was also dismissed. It is only thereafter that the present notice dated 27th March 2015 came to be issued. It states that the Assessing Officer has reason to believe that income assessable to tax has escaped assessment and that it was proposed to be re-assessed. The appellant sought the reasons on 09th April 2015. The reasons were then furnished that on examination of the assessment record, which is but a re-examination of the same record, without any fresh material, that the appellant had claimed land consolidation expenses of ₹ 60,27,000/- in terms of agreeme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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