The Assessing Officer passed assessment orders for the AYs 2005-06, 2006-07 and 2007-08. The Assessing Officer, for the AY. 2005-06 held that reasons formed to reopen the assessment on the basis of assessee’s voluntary depositions and seized materials. The Commissioner (Appeals) partly allowed the appeals. The Tribunal partly allowed the appeals and cross objections filed by the assessee. On appeal  the Court held  that the Tribunal had erred in upholding the reopening of the assessment under section 147 for the AY.s 2005-06, 2006-07 and 2007-08 and in holding that there was reason to believe that income had escaped assessment and all mandatory conditions to reopen the assessment were satisfied. No proceedings were initiated under section 153C. Thus, there was patent non-application of mind. The Assessing Officer had not recorded his satisfaction with regard to escapement of income. The assessee’s admission during the survey under section 133A could not be a conclusive evidence. Relied on  Pullangode Rubbber Produce Co Ltd v. State of Kerala (1973) 91 ITR 18 (SC)  (AY. 2005-06 to 2007-08)