Hindustan Lever Ltd. vs R.B. Wadkar, Assistant Commissioner Of ... on 25 February, 2004
46. 'Bir Bahadur Singh Sijwali' (supra), makes reference
to 'Hindusan Lever Ltd. vs. R.B. Wadkar', 268 ITR 332
(Bom.), to hold that the reasons recorded for reopening the
assessment are to be examined on a standalone basis and
nothing can be added to the reasons. It was also observed
that the reasons must point out to an income escaping
assessment and not merely need of an enquiry which may
result in detection of an income escaping assessment. It
was observed that it is necessary that there must be
something which indicates, even if it does not establish, the
escapement of income from assessment; that it is only on
that basis that the AO can form a prima-facie belief that an
income has escaped assessment; that merely because
some further investigations have not been carried out,
which, if made, could have led to detection of an income
escaping assessment, this can not be reason enough to
hold the view that the income has escaped assessment;
and that there has to be some kind of cause and effect of
relationship between the reasons recorded and the income
escaping assessment.