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TMI Blog2022 (4) TMI 1391X X X X Extracts X X X X X X X X Extracts X X X X ..... the income of the assessee from assessment. It is also settled law that the reasons for re-opening assessment has to be tested / examined only on the basis of the reasons recorded at the time of issuing a notice under Section 148 of the Act seeking to re-open the assessment. These reasons cannot be improved upon and/or supplemented much less substituted by an Affidavit and/or oral submissions (First Source Solutions Limited vs. The Assistant Commissioner of Income Tax - 12(2)(1) and Another [ 2021 (9) TMI 248 - BOMBAY HIGH COURT] ). Therefore, the submission of Mr. Sharma that respondent no.2 has explained in the order on objections what was the report and information and details on which he formed a reason to believe, will be of no ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant assessment year, the assessment not having been completed under Section 143(3), the proviso to Section 147 may not apply. That would still not absolve responsibility of respondents that the reasons for the formation of the belief must have a rationale connection with or relevant bearing on the formation of the belief. Mr. Pardiwalla submitted 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 an escapement of the income of the assessee from assessment in the particular year. Mr. Pardiwalla submitted that the reasons recorded not only fails to make out a demonstrable link between the tangible material and the formation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rror. In our view, respondent no.2 owed an obligation to explain as to how a typographical error crept in, in more than one place and before affixing his signature did he read the reasons that he had recorded. Therefore, we are not satisfied with the casual excuse of typographical error. 8. Moreover, if only the Additional Commissioner, who has recommended the proposal of respondent no.2 to respondent no.3 or respondent no.3 himself, while expressing satisfaction that the case was fit for issue of notice under Section 148, had bothered to read the reasons recorded, certainly they would have found the errors and they would have directed respondent no.2 to correct the reasons or refused to grant approval on reasons fraught with errors. Thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agraph does not even indicate what was the trading activity during the year that the petitioner was involved in or from what shares or derivatives the petitioner is alleged to have made huge profit. How can someone be expected to respond to such vague charges ? 11. In Income Tax Office, I Ward, District VI Calcutta and Others vs. Lakhmani Mewal Das 103 ITR 437, it is held as under : As stated earlier, the reasons for the formation of the belief must have a rational connection with or relevant bearing 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to whether action should be initiated for re-opening assessment but at the same time, it is not any and every material, however vague and indefinite or distant, remote and far-fetched which would warrant the formation of the belief relating to escapement of the income of the assessee from assessment. It is also settled law that the reasons for re-opening assessment has to be tested / examined only on the basis of the reasons recorded at the time of issuing a notice under Section 148 of the Act seeking to re-open the assessment. These reasons cannot be improved upon and/or supplemented much less substituted by an Affidavit and/or oral submissions ( First Source Solutions Limited vs. The Assistant Commissioner of Income Tax - 12(2)(1) and A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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