9911796707
TMI Blog2025 (1) TMI 1067X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 27 March 2021 under Section 148 of the Income Tax Act, 1961 ("the said Act"). The reasons recorded reads as under :- "The assesse company has filed return of income for A.Y. 2015-16 on 25.09.2015 declaring total Income of Rs. 107,15,89,910/- under normal provisions of the IT Act, 1961. The case was selected for Scrutiny assessment under CASS selection. Assessment u/s, 143(3) of the I.T. Act was completed on 09.11.2017 accepting the same as the assessed income. 1. During the year under consideration the assessee received Income from salary, house property, business, capital gains and other sources. 2. On perusal of the Profit & Loss account for the year ending 31.03.2015, it is noticed that the assesse had an interest income o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f interest - others shown in the computation. 2. From the above discussion, it can be concluded that interest from Pragati Gramin Bank of Rs. 5,48,720/- and interest - others of Rs 2,54,942/- has not been included in the computation of income by the assesse. The AO has accepted the computation submitted by the assesse in the assessment order. This resulted in under assessment of Rs. 8,03,662/- involving tax effect of Rs. 2,73,165/- (excluding interest u/s 234A, 234B and 234C). 3. Further it was seen that the assesse had submitted vide letter dated 25.09.2017 that he had borrowed funds of Rs. 20,74,59,584/- from Pragati Gramin Bank, Hospet and advanced loans amounting to Rs. 1,77,39,11,205/- The assessee further submitted that interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to believe' would mean cause or justification. If the Assessing Officer has cause or justification to know or suppose the income had escaped assessment, it can be said to have reason to believe that the income had escaped assessment. The expression cannot be read to mean that the Assessing Officer should have finally ascertained the fact by legal evidence or conclusion, objectively. In the present case, since the assessee has failed to substantiate its payments towards interest on loan taken from the banks, it leads-to-enough cause for forming of belief by the undersigned regarding of income during the year under consideration. 6. The reason for re-opening the assessment u/s. 148 is enclosed herewith for your information. You are re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade by the Petitioner. 7. We have considered the rival submissions and perused the records. Admittedly, the impugned notice is issued after a period of four years from the end of the relevant assessment year and proviso to Section 147 is attracted. 8. In this case, the assessment order under Section 143 (3) of the said Act was passed on 9 November 2017. Therefore, first proviso to Section 147 is clearly attracted, whereby the Assessing Officer has to satisfy the jurisdictional condition that there was failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment. On a reading of the reasons for re-opening, we could not find any allegations as contemplated under the first proviso to Section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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