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1 - 4 of 4 (0.21 seconds)Varshaben Sanatbhai Patel vs Income Tax Officer & on 6 October, 2015
Therefore, the ratio in Coronation Agro Industries Ltd. (supra) would
not appl y. The decision of Hon'ble Gujarat High Court in Varshaben
Sanatbhai Patel (supra) in favour of the assessee is on the footing that
mere information towards escapement would not be sufficient to justify
formation of the belief in the absence of specific details available on
record. The fact situation in the present case is entirel y different. The
AO has acted upon credible information coupled with underl ying
material to initiate the action under s.147 of the Act. The reasons
recorded were based on prima facie material which, in turn, clearl y
indicated the relationship between the formation of belief and the
reasons for such belief. The belief entertained b y AO is, in our view,
not arbitrary or irrational. We thus see no error on the part of the AO to
exercise the powers under s.147 of the Act.
Deputy Commissioner Of Income Tax ... vs The Maharashtra Agro Industries ... on 5 April, 2019
Therefore, the ratio in Coronation Agro Industries Ltd. (supra) would
not appl y. The decision of Hon'ble Gujarat High Court in Varshaben
Sanatbhai Patel (supra) in favour of the assessee is on the footing that
mere information towards escapement would not be sufficient to justify
formation of the belief in the absence of specific details available on
record. The fact situation in the present case is entirel y different. The
AO has acted upon credible information coupled with underl ying
material to initiate the action under s.147 of the Act. The reasons
recorded were based on prima facie material which, in turn, clearl y
indicated the relationship between the formation of belief and the
reasons for such belief. The belief entertained b y AO is, in our view,
not arbitrary or irrational. We thus see no error on the part of the AO to
exercise the powers under s.147 of the Act.
The Income Tax Act, 1961
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