Law:

Section:

Section 147 of the Income-tax Act, 1961 - Income escaping assessment - General  After a foundation based on information is set up, there must still be some reasons which warrant holding of a belief so as to necessitate issuance of a notice under section 148 . [A.Y.: 1997-98]. There must be reason to believe warranting the issuance of a notice by the Assessing Officer. If there are no reasons, then the entire foundation for initiating the proceedings is bad and the notice initiating proceedings must be quashed. A mere statement of facts in the form of a report is not a substitute for reasons that are required to be recorded before issuing a notice under section 148 of the Act. Mere satisfaction of the Assessing Officer for the issuance of a notice is not enough - there must be reasons on record which have led him to believe that a notice should be issued. After a foundation based on information is set up, there must still be some reasons which warrant the holding of a belief so as to necessitate the issuance of a notice under section 148. The assessees had purchased certain shares through stock and share broker. Subsequently, these shares were sold at a much higher value through another broker. The assessee had disclosed long-term capital gain arising from the transaction. Some intra -departmental information was received by the Assessing Officer to the effect that the assessees had taken a bogus entry of long-term capital gain after paying the equivalent amount in cash together with premium for the accommodation entry to the second broker. This information was received from the Deputy Director of Income-tax (Investigation). Based on the information received, the Assessing Officer took action to issue a notice under section 148. The concerned files were then put up before the Commissioner of Income-tax and in response to the question whether the Commissioner was satisfied that income had escaped assessment, he wrote 'Yes'. The question for consideration was whether the reopening of assessment was justified. Held that the only information was that the assessees had taken a bogus entry of capital gains by paying cash along with some premium for taking a cheque…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492