COMMISSIONER OF INCOME TAX Vs. SHIV RATAN SONI

JUDGEMENT

(1.) THIS appeal is directed against the order of Tribunal, Jodhpur Bench, Jodhpur dt. 26th May, 2003 and relates to asst. yr. 1986 -87. The order of the Tribunal is common deciding appeals arising out of asst. yrs. 1986 -87 to 1988 -89.

(2.) THE brief facts giving rise to this appeal are that the assessee is engaged in the activity of money -lending and goldsmithy. A search was conducted in the premises of the assessee on 18th Nov., 1988 and following assets/valuable articles were found:

(3.) THE Tribunal has quashed the notices issued under Section 148 inter alia on the ground that the satisfaction of ITO about the escapement of income could not be discovered from the reasons stated by him which are vague and which are not founded on existing material on applying his mind thereto and the notices have been issued purely following the order passed under Section 132(5) without application of his mind to the material before it. It was pointed out that in the order under Section 132(5) itself it has been stated that material found during search shall be looked into by the AO during the assessment proceedings clearly indicates that order under Section 132(5) itself was not founded on any analysis of the documents or material seized during search. Hence, it could not provide basis for formation of necessary belief required under Section 147 before issuance of notices under Section 148.