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| The Tax Publishers2020 TaxPub(DT) 1885 (MP-HC) INCOME TAX ACT, 1961
Section 147
Where AO had reopened the case without any evidence and that too after the block assessment was over and even the regular assessment under section 143(3) was also completed and there was no evidence found during the course of search that there was undisclosed production, therefore, power under section 147 cannot be exercised merely on reason of suspicion but there should be reason to believe.
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Reassessment - Reason to believe - AO reopened the case without any evidence -
Assessee was engaged in the business of Beer and bottling of Indian made foreign liquor (IMFL). Notice under section 148 was issued by AO on the ground that assessee had suppressed the production and indulged in making the sales outside the books of account relating to Beer produced by it and therefore, after computing the production of Beer as per the methodology prescribed in the said manual. Held: As noticed that AO had reopened the case without any evidence and that too after the block assessment was over and even the regular assessment under section 143(3) was also completed. There was no evidence found during the course of search that there was undisclosed production and no information was available with the revenue that there was unaccounted production. Power under section 147 cannot be exercised merely on reason of suspicion but there should be reason to believe. Therefore, appeal of Revenue was dismissed.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2000-01
IN THE MADHYA PRADESH HIGH COURT
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