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TMI Blog2023 (2) TMI 717X X X X Extracts X X X X X X X X Extracts X X X X ..... scrutiny assessment had been made and that the only requirement was to initiate proceedings under Section 147 on the basis of reason to believe goes to prove that the assessing officer had reopened the assessment only on the basis of reason to believe and not failure to disclose material facts fully and truly, on which too the assessing officer ought to have been satisfied as matter pertained to reopening beyond the period of four years. In our opinion, the manner in which the assessing officer proceeded reflects total non-application of mind, which neither satisfies the jurisdictional condition, which was required to be followed in terms of Section 147 nor does it in the least satisfy the conditions prescribed in the case of Hindust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h 2021 was issued by the assessing officer seeking to reopen the Petitioner s assessment for assessment year 2015-16 on the ground that the assessing officer had reason to believe that income for that year had escaped assessment within the meaning of Section 147 of the Act. The notice under Section 148, therefore, required the Petitioner to file a return in the prescribed form for the said assessment year within 30 days from the date of service of the said notice. The notice was purported to have been issued after obtaining necessary satisfaction of Principal Commissioner of Income Tax-5, Mumbai. 4 The Petitioner further states that return of income was filed in response to the notice under Section 148 on 13 April 2021 declaring income a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the investigation report of the investigation wing that the assessee is the beneficiary of accommodation entries by layering of funds through various shell companies. The details of the accommodation entries take by the assessee are categorized as under : Sr. No. Particulars of Bank A/c Value 1. Account No.914020039098036 Rs.2,15,00,000/- of M/s Outstripe Suppliers Pvt. Ltd. 4. 5. 6. Basis of forming reasons to believe and details of escapement of income : As discussed above, the assessee is a benefciary of accommodation entries which the assessee has used to evade taxation. In view of this, I have reasons to believe that income more than Rs.2,15,00,000/-, chargeable to tax escaped a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessing officer has stated that no scrutiny assessment has been made for assessment year 2015-16. And that the Principal Commissioner of Income Tax-5, Mumbai also mechanically appears to have accorded sanction to the issuance of the notice under Section 148 without noticing the contradiction highlighted hereinabove and without verifying as to whether the case was actually ft for grant of such sanction for reopening of the assessment proceedings. 8. In the reply filed by the Respondent, it is admitted that it was only due to inadvertence that in para-7 of the reasons recorded that a stand was taken that no scrutiny assessment had been made. The Respondent in their reply affidavit further tried to support their action in reopening the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt held : .The reasons recorded should be clear and unambiguous and should not suffer from any vagueness. The reasons recorded must disclose his mind. The reasons are the manifestation of the mind of the Assessing Officer. The reasons recorded should be self- explanatory and should not keep the assessee guessing for the reasons. Reasons provide the link between conclusion and evidence. The reasons recorded must be based on evidence. The Assessing Officer, in the event of challenge to the reasons, must be able to justify the same based on material available on record. He must disclose in the reasons as to which fact or material was not disclosed by the assessee fully and truly necessary for assessment of that assessment year, so as t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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