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| The Tax Publishers2020 TaxPub(DT) 3272 (Mum-Trib) INCOME TAX ACT, 1961
Section 147
Where AO formed reasonable belief of escapement of income on the basis of report of Investigation Wing, further supported by the report of Sales Tax Department, Govt. of Maharashtra and information relied upon by AO constituted a fresh tangible material which was sufficient to reopen assessment.
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Reassessment - Reopening on basis of information received from Sales Tax Department - Assessee pleading no conclusive proof as to tax escapement -
AO received information from Sales-Tax Department as to assessee being one of the beneficiaries of hawala dealers who had taken accommodation bills of bogus purchases from various parties. Accordingly, AO reopened assessment and made addition. Assessee challenged reopening on the plea that there was no conclusive proof as to tax escapment. Held: At the stage of issuance of section 148 notice, the only question is whether there was relevant material on which a reasonable person could have formed a requisition belief that income had escaped assessment and not the established fact of escapement of income. In the instant case, AO formed reasonable belief of escapement of income on the basis of report of Investigation Wing, further supported by the report of Sales Tax Department, Govt. of Maharashtra and information relied upon by AO constituted a fresh tangible material which was sufficient to reopen assessment.
Relied:Asstt. CIT v. Rajesh Jhaveri Stock Brokers (P) Ltd. (2007) 291 ITR 500) : 2007 TaxPub(DT) 1257 (SC).
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2010-11
INCOME TAX ACT, 1961
Section 69C
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