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TMI Blog1991 (1) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 by exhibits P-1 to P-3 orders, on the basis of revised returns filed by him. Subsequently, penalty and interest were also levied. On appeal, the levy of penalty was set aside by exhibits P-8 to P-10 orders. A petition filed by the assessee under section 273A of the Act exhibit P-4 is still pending consideration. While so, the first respondent issued notices under section 148 (exhibits P-12 and P-13) proposing to reopen the assessment for the year 1984-85 and requiring the petitioner to file returns. The petitioner by exhibit P-14, and his representative by exhibit P-15, told the first respondent that the assessment completed on the basis of revised returns cannot be reopened, as the returns were filed at the instance of the assessing au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to believe that the income of the assessee has escaped assessment and, secondly, he must have reason to believe that such escapement is by reason of the omission or failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment. If either of these conditions is not fulfilled, the notice issued by the Income-tax Officer would be without jurisdiction.. . . It must be reasonable or in other words it must be based on reasons which are relevant and material." In reply, counsel for the Revenue submitted that the first respondent was not required to state reasons while issuing exhibits P-12 and P-13. Existence of reason to believe that there was escapement of income is all that is needed to invoke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otice on the assessee to furnish a return of income. The section does not envision the need to disclose reasons for the belief, nor can it be read into it as a requirement of natural justice. No adjudication of rights or determination resulting in consequences to the assessee is involved at the stage of issuing the notice. The only requirement in law for initiating proceedings under section 148 is that there must be reasons to justify the belief that there is escapement or suppression of income. The requirement is only so far and no further, and the requirements of quasi-judicial determination do not govern the proceedings at the stage of issuing a notice. Because no reasons are stated, it does not mean that there are no reasons. In the ins ..... X X X X Extracts X X X X X X X X Extracts X X X X
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