Judicial update: In this case, the AO initiated reassessment proceedings u/s 147 and assessee raised objections to the reasons recorded u/s 148. The AO disposed of the objections in a summary manner. On a writ petition filed by the assessee, the honble Delhi HC held:- The prima facie or tentative view must have some basis or foundation to support and justify in depth and detailed inquiry. This should be indicated and pointed out. Despite the assessee seeking for details of the transactions, with categorical denial that there were transactions inter se, the Assessing Officer has neither referred to material/ground nor referred to any such transaction in the impugned order. When a fundamental factual dispute was raised that the assessee had no transaction whatsoever with M or his related/controlled companies, it was in the factual matrix of the present case, necessary for the Assessing Officer to at least refer to or rely on either the statement of M specifically naming the assessee or giving some basis for formation of the said belief or describe and hint at details of the transaction that had come to the knowledge or notice of the Assessing Officer. The material or evidence which gave reason to the Assessing Officer to believe that there is an escapement of income should be indicated. There has to be a material or evidence existing on record for the reasons to believe which should have a direct nexus to the formation of such belief. Recently held by the DHC in case of Ashok Mittal
Posted on: Sat, 10 May 2014 00:22:15 +0000
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