9911796707
TMI Blog2023 (9) TMI 1041X X X X Extracts X X X X X X X X Extracts X X X X ..... on 27th July 2007 for Assessment Year 2007-2008 declaring total income of Rs. 3,12,011/-. The return of income was first processed under Section 143(1) of the Act and later selected for scrutiny and an assessment order dated 12th November 2009 under Section 143(3) of the Act was passed accepting the returned income. 3. Just 5 days short of the six years' limitation getting over, Petitioner received a notice dated 25th March 2014 under Section 148 of the Act. Petitioner replied raising objections to the notice and asked for a copy of the recorded "reasons to believe". The reasons to believe was furnished along with notices under Sections 143(2) and 142(1) of the Act. The reason to believe reads as under : ". Reasons for the belief that in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was transferred through cheque in the bank account of Crown and Petitioner was a director/family member of Crown, it was required to examine the case of assessee for Assessment Year 2007-2008 so that such unaccounted money could be brought to tax. The reason presupposes that the amount of Rs. 7,00,000/-, which was deposited in the account of Petitioner, was unaccounted money without any basis. Moreover, it indicates that he had no reason to believe income has escaped assessment but wanted to investigate or examine the matter further. Whether that would qualify to cross the threshold of "reason to believe", is what we have to consider amongst other things. 5. Rule was issued on 17th June 2014. No affidavit in reply has been filed and Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al condition for issuance of notice is to be found in Section 147 of the Act and that is on the reason to believe that, any income chargeable to tax has escaped assessment for any assessment year, then, the AO may, subject to the provisions of Sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment." In the case at hand, the AO does not say that any income chargeable to tax has escaped assessment. All that the AO desires is 'examination of certain details pertaining to the amount paid by Petitioner to Crown'. That cannot be stated to be founded on the belief that any income which is chargeable to tax has escaped assessment and hence such verification is necessary. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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