9911796707
TMI Blog2023 (2) TMI 426X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year 2016-17. The assessing Officer subsequently issued a notice under Section 148 of the Act dated 30.03.2021 seeking to reopen the assessment for the assessment year 2016-17 on the ground that income chargeable to tax for the said year had escaped assessment. The reasons for reassessment as furnished to the Petitioner were as under : "Issues as per reasons recorded for reopening In this case, information has been received from O/o DDIT(Inv.), Unit-7(4), New Delhi, wherein the DDIT has informed that a search was conducted in the case of Mohit Garg and others on 26 November 2016 after information was received from Delhi Police that Rs.3.70 core cash in demonetized currency (Old Rs.500 and Rs.1000 notes) was seized from Mr. Mohi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmation of the belief that the assessee's income had escaped assessment. It was, therefore, contended that the jurisdictional requirement of Section 147 having not been fulfilled by the assessing Officer, the notice under Section 148 of the Act, was without jurisdiction. 3. Learned Counsel for the revenue, Mr. Suresh Kumar, on the other hand, buttressed the reasoning of the assessing Officer and stated that there was enough material and reasons for the assessing Officer to initiate reassessment proceedings based upon the information, which was clearly suggestive of the fact that income chargeable to tax had escaped assessment. With reference to the reply affidavit fled by the revenue, it was urged that the information obtained by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of the assessee from assessment in the particular year because of his failure to disclose fully and truly all material facts. It is no doubt true that the court cannot go into the sufficiency or adequacy of the material and substitute its own opinion for that of the Income-tax Officer on the point as to whether action should be initiated for reopening assessment. At the same time we have to bear in mind that it is not any and every material, howsoever vague and indefinite or distant, remote and farfetched, which would warrant the formation of the belief relating to escapement of the income of the assesee from assessment. The fact that the words "definite information" which were there in section 34 of the Act of 1922, at one time before i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason, it is alleged that on verification of the VAT returns and Annexure-2A of M/s Magnum Tradex Pvt. Ltd. for the period 1 January 2016 to 31 March 2016, it was found that the Petitioner, i.e. M/s BU Bhandari Auto Lines Pvt. Ltd. had sold goods amounting to Rs.2,08,76,068/- to M/s Magnum Tradex Pvt. Ltd, which was allegedly a shell entity. 8. In the reasoning recorded, it is not clear as to how M/s Magnum Tradex Pvt. Ltd. is sought to be connected with Rajeev Khushwaha. It has not been alleged in the reasons that M/s Magnum Tradex Pvt. Ltd., with whom the Petitioner made an alleged sale was being run by Rajeev Khushwaha, although, in the reply affidavit, it is stated by the revenue that M/s Magnum Tradex Pvt Ltd, was one of the entities ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
