Search Results Page

Search Results

1 - 10 of 12 (0.41 seconds)

Hindustan Lever Ltd. vs R.B. Wadkar, Assistant Commissioner Of ... on 25 February, 2004

As Hon'ble Bombay High Court has observed, in the case of Hindustan Lever Ltd. (supra), the reasons should provide link between evidence and the conclusion. The evidence is that the figures of professional receipts as per TDS certificates and as shown in the profit and loss account vary, but then this does not lead to the conclusion that the income has escaped assessment. As a matter of fact, as we will see in paragraph 15 of this order a little later, on the same date and vide identical reasons recorded, the Assessing Officer has also reopened the assessment for subsequent assessment year as well, in which professional income as per profit and loss account was far more than the aggregate of figure of payments as per tax deduction at source certificates. It is thus the difference per se and not the professional income as per profit and loss account being less than the figure as per tax deduction at source certificates which is proximate cause of reopening the assessment. In any event, the difference between receipt and income is too significant to be ignored. There may be need to verify but that mere need to verify does not bring the matter within the scope of cases in which reassessment proceedings can be validly initiated. What is needed, to successfully invoke the reassessment proceedings, is the reasons to believe that income has escaped assessment. No doubt, even a prima facie reason for believing that income has escaped assessment is sufficient to invoke the reassessment proceedings, but there is a subtle, though significant, distinction between reasons to believe and reasons to suspect. While the former is good enough to hold that income has escaped assessment and initiate suitable remedial measures in respect thereof, the latter can at best be the ground enough to verify and examine the matter further. The mere fact that matter needs to verified and deserves to examined further can, in our humble understanding, never be a reason good enough to believe, even if it is a good reason to suspect so, that income has escaped assessment, and therefore, a reason good enough to invoke the reassessment 5 ITA No. 1952/Kol/2013 Assessment Year: 2008-09 Swapan Kumar Mondal proceedings. An Assessing Officer may have a hunch that here is a case in which some income may have escaped assessment but that hunch or suspicion, howsoever legitimate, cannot be a reason to "believe" that income has escaped assessment. The condition precedent for invoking section 147 is, thus, far from satisfied. In this view of the matter, in our considered view, the very initiation of reassessment proceedings on the facts of this case was devoid of legally sustainable merits. We, therefore, quash the reassessment proceedings. As the reassessment proceeding itself is quashed, we see no need to deal with the matter on merits and dismiss the related grievances, raised by the assessee on merits of the case, as infructuous."
Bombay High Court Cites 16 - Cited by 271 - V C Daga - Full Document

Prashant S. Joshi vs The Income-Tax Officer Ward 19(2)(4 on 22 February, 2010

"9. We have taken due note of the fact that the original assessment proceedings were completed under section 143(1) of the Act and that the reassessment proceedings are initiated within four years but that does not, as is the settled legal position, does not imply, as has been indirectly suggested by the learned Departmental Representative, that assessment proceedings can be revisited even in the absence of legally sustainable reasons for formation of prima facie belief that income has escaped assessment. In other words, irrespective of whether or not the original assessment has been completed under scrutiny assessment or summary assessment, it is necessary that conditions precedent for invoking section 147 have to be satisfied. Hon'ble Bombay High Court, in the case of Prashant S Joshi v. ITO [2010] 324 ITR 154/189 Taxman 1 had an occasion to deal with this question and also consider the scope of Hon'ble Supreme Court's judgment in the case of Asstt. CIT v. Rajesh Jhaveri Stock Brokers (P.) Ltd. [2007] 291 ITR 500/161 Taxman 316 in this regard. After elaborately considering Hon'ble Supreme Court in the case of Rajesh Jhaveri Stock Brokes (P.)
1   2 Next