Commissioner Of Income Tax Ii, Nagpur v. M/S. M.b. Traders, Yavatmal

IN THE HIGH COURT OF JUDICATURE AT BOMBAYNAGPUR BENCH : NAGPUR INCOME TAX APPEAL NO. 16 OF 2010 (Commissioner of Income Tax II, Nagpur vs. M/s. M.B. Traders, Yavatmal) Office Notes, Office Memoranda ofCoram, appearances, Court's orders or directions and Registrar's orders. Court's or Judge's orders CORAM : B.P. DHARMADHIKARI & P.D. KODE, JJ. DECEMBER 02, 2011. Heard Shri Parchure, learned counsel for the appellant. Income Tax Appellate Tribunal (ITAT) has found that Assessing Officer has abdicated his powers in favour of Commissioner of Income Tax (Appeal). In view of this specific finding, we on 17[th] October 2011 adjourned the matter to enable the department to produce before us necessary records incorporating decision of Assessing Officer to issue notice under Section 147(1) of the Income Tax Act, 1961. Along with pursis stamp No. 11469 of 2011, an annexure signed by that officer has been filed subsequently. That annexure is looked into by ITAT and in fact ITAT has reproduced it. ITAT has found on the basis of that annexure that it is nothing but abdication of his jurisdiction by Assessing Officer. Section 147(1) requires Assessing Officer to have “reason to believe” that any income had escaped assessment. There is no such finding recorded by the Assessing Officer in the annexure as produced. Shri Parchure, learned counsel states that there is material on record which shows that income has escaped assessment. He further states that Assessing Officer is not expected to reproduce the words as used in section and hence the entire material on record needs to be looked into. He has further contended that the department should also be permitted to initiate fresh action in the matter in accordance with law, if this Court is not convinced. As we have not found “any reason to believe” recorded by Assessing Officer, we are not in a position to find any fault with the impugned order of ITAT. No substantial question of law, therefore, arises. If the law permits appellant to initiate fresh action under Section 147(1) read with Section 148 of the Income Tax Act, 1961, no orders from this Court are required for that purpose. In that view of the matter, we dispose of the appeal. No order as to costs. JUDGE JUDGE *GS.