[Opinion] ‘Reasons to Believe’ – In a new disguise | Finance Act 2021

Dindayal Dhandaria – [2022] 137 taxmann.com 299 (Article)

Prior to amendments by the Finance Act, 2021, the “Reasons to believe” was the condition for re-opening a completed assessment. Now, the condition for reopening is “Information with the Assessing Officer which suggests that income chargeable to tax has escaped assessment”. Over the years, the judicial precedents had interpreted the phrase “reasons to believe” and its scope and limitations had attained certain “clarity” and “definitiveness”.
This article is about the question whether, pursuant to deletion of these words by Finance Act, 2021 from the relevant sections, the said judicial precedents have become otiose.

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