TAX PICKINGS (CERTAIN NICETIES TO BE OBSERVED WHILE RECORDING REASONS FOR REOPENING)

"It is needless to mention that the reasons are required to be read as they were recorded by the Assessing Officer. No substitution or deletion is permissible. No addition can be made to those reasons. No inference can be allowed to be drawn based on reasons not recorded. It is for the Assessing Officer to disclose and open his mind through reasons recorded by him. He has to speak through his reasons. It is for the Assessing Officer to reach the conclusion as to whether there was failure on the part of the assessee to disclose fully and truly all material fact necessary for his assessment for the concerned assessment year. It is for the Assessing Officer to form his opinion. It is for him to put his opinion on record in black and white. The reasons recorded should be clear and unambiguous and  should not suffer from any vagueness. The reasons recorded must disclose his mind. Reasons are manifestation of the mind of the assessing Officer. The reason guessing for the reasons recorded should be self-explanatory and should not keep the assessee guessing for the reasons. Reasons provide link between conclusion and evidence. The reasons recorded must be based on evidence. The Assessing Officer in the event of challenge to the reasons must be able to justify the same based on material available on record , He must disclose in the reasons as to which fact or material was not disclosed by the assessee fully and truly necessary for assessment of that assessment year, so as to establish the vital link between the reasons and evidence. That vital link is the safeguard against arbitrary reopening of the concluded assessment, The reasons recorded by the Assessing Officer cannot be supplemented by filing an affidavit or making an oral submission otherwise, the reasons which were lacking in the matter reaches the court, on the strength of the affidavit or oral submission advanced.   

- Hindustan Lever Ltd. v. R.B. Wadkar, Asst. CIT (No.1) [2004] 268 ITR 332 (Bom)

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