Allowing the petition the Court held that , the Assessing Officer had initiated the reassessment proceedings on the basis of the self-same material that he had examined during the regular assessment proceedings under section\u00a0143(3)\u00a0and had merely recorded his belief that income had escaped assessment solely on the basis of his observation that the assessee had an outstanding business loan with the bank. There did not exist any tangible material which the assessing authority might have treated as a \u201cdirect or circumstantial\u201d evidence to form a bona fide \u201creason\u201d relevant to the \u201cbelief\u201d of any income having escaped assessment. The nature of the audit objection, which was raised regarding the procedure followed in the assessment proceedings, had not been mentioned by the Department either in the \u201creason to believe\u201d recorded or in the counter-affidavit filed. The audit objection could not substitute the statutory requirement that the Assessing Officer must record his \u201creason to believe\u201d that any income had escaped assessment. Therefore, the jurisdictional requirement of section\u00a0147\u00a0had not been shown to have existed or established. The reassessment proceedings initiated were quashed.( AY.2009-10)<\/p>\n","protected":false},"excerpt":{"rendered":"
S.147: Reassessment-After the expiry of four years- Reasons recorded referring to facts already on file of Assessing Officer- \u2014No rational and tangible nexus between reason and belief \u2014 Reassessment proceedings quashed.[ S.148 ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2211","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-zF","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/2211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=2211"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/2211\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=2211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=2211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=2211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}