Sec. 147 of Income Tax Act, 1961— Reassessment —Reassessment invalid as reasons rendered could not have led to formation of any belief that income had escaped assessment.

Facts: - By filing this petition under Article 226 of the Constitution of India, petitioner has assailed the legality and validity of the four impugned notices, all dated 25.02.2000, issued under Section 148 proposing to re-assess the income of the petitioner for the assessment years 1992-93, 1993-94, 1994-95 and 1995-96 on the ground that income chargeable to tax for the said assessment years had escaped assessment within the meaning of Section 147.

Held, that it is quite evident that there was no basis or justification for respondent No.1 to form a belief that any income of the assesee chargeable to tax for the assessment years under consideration had escaped assessment within the meaning of Section 147 . The reasons rendered could not have led to formation of any belief that income had escaped assessment within the meaning of the aforesaid provision. Therefore, in the facts and circumstances of the case, the impugned notices issued under Section 148 cannot be sustained. Accordingly, the impugned notices dated 25.02.2000 are hereby set aside and quashed.[2020] 26 ITCD Online 065 (BOM)