PCIT vs. Manzil Dineshkumar Shah (Gujarat High Court)
S. 147: Even a s. 143(1) assessment
cannot be reopened without proper 'reason to believe'. If the reasons state
that the information received from the VAT Dept that the assessee entered into
bogus purchases "needed deep verification", it means the AO is
reopening for doing a 'fishing or roving inquiry' without proper reason to
believe, which is not permissible
It is equally well settled that the
notice of reopening can be supported on the basis of reasons recorded by the
Assessing Officer. He cannot supplement such reasons. The third principle of
law which is equally well settled and which would apply in the present case is
that reopening of the assessment would not be permitted for a fishing or a
roving inquiry. This can as well be seen as part of the first requirement of
the Assessing Officer having reason to believe that income chargeable to tax
has escaped assessment. In other words, notice of reopening which is issued
barely for making fishing inquiry, would not satisfy this requirement
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