Dismissing the appeal of the assessee the Court held that, since the Tribunal in her son’s case had accepted the submission that those investments should not be brought to tax in his hands as he was the second holder and that they could have been brought to tax, if any, in the hands of the first holder, the assessee, the Assessing Officer had reason to believe that the income of the assessee with reference to those three investments had escaped assessment. The subjective satisfaction of the Assessing Officer was not perverse or vitiated by any error of law. The order of the Tribunal upholding the proceedings initiated against the assessee under section 147 for the assessment year 2007-08 was not erroneous. (AY. 2007 -08).
S. Rajalakshmi ( Smt.) v. ITO (2018) 409 ITR 157 / 172 DTR 36/ 305 CTR 929/ ( 2019) 260 Taxman 205(Bom.)( HC). www.itatonline.org
S. 147 : Reassessment -Reason to believe -Based on decision of Tribunal accepting contention of Assessee’s son in his case that income was chargeable in assessee’s hands as first holder of investments in mutual funds—Formation of belief is within subjective satisfaction of Assessing officer- Notice for reopening of assessment is valid. [S. 148]