Law:

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Section 147 of the Income-tax Act, 1961 - Income escaping assessment - General - Assessment year 2006-07 - Where revised computation submitted by assessee during assessment was found to be correct and accepted as such by Assessing Officer, reassessment, on ground that such recomputation having been submitted beyond time specified in section 139(5), was invalid, was not justified [In favour of assessee] On writ the sufficiency of reasons for forming the belief, is not for the Court to Judge but it is open to an assessee to establish that there in fact existed no belief or that the belief was not at all a bona fide one or was based on vague, irrelevant and non-specific information. To that extent, the Court may look into the conclusion arrived at by the Assessing Officer and examine whether there was any material available on the record from which the requisite belief could be formed by the Assessing Officer and further whether that material had any rational connection or a live link with the information of the requisite belief. The Assessing Officer has no power to review; he has power to reassess. But the reassessment must be based on fulfilment of certain pre-conditions. The concept of 'change of opinion' must be treated as an in-built test to check abuse of power by the Assessing Officer. The Assessing Officer has power to reopen, provided there is 'tangible material' to come to the conclusion that there is escapement of income from assessment. Where revised computation submitted by the assessee during assessment was found to be correct and accepted as such by the Assessing Officer, reassessment on ground that such recomputation having been submitted beyond time specified in section 139(5) was invalid: Held that the main reason for formation of the belief that income had escaped assessment was that the petitioner was not entitled to file a revised return beyond the prescribed statutory period, and that the statement of revised computation of income submitted by the petitioner would not constitute a revised return. It was apparent that the Assessing Officer while framing the original assessment had examined the claim of the petitioner as per the revised…

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