Indian Kanoon - Search engine for Indian Law

14. In Family of Sankaralinga Nadar v. Commissioner of Income-tax Madras a Division Bench of the Madras High Court held (at p. 322) that "information" and "reasonable belief" constitute the essential requisite and basic foundation to set in motion the machinery of re-assessment under Section 34(1)(b) of the Act...... While complete absence of information might knock the bottom out of the jurisdiction of the Officer, so long as there is some information in his possession upon which a belief of escapement of assessment could be said to be not unreasonably entertained, the jurisdiction is well founded.....The Income-tax Officer may rightly commence Section 34 proceedings, if he has in consequence of particular information in his possession, reason to believe that income has escaped assessment and may, even if that particular information proves to be ill founded at the conclusion of the enquiry yet bring to tax such escaped income as comes to light as a result of the enquiry."