Reassessment beyond four years fails without nondisclosure of material facts; reopening was without jurisdiction.

A reassessment notice issued beyond four years from the end of the relevant assessment year was held invalid because there was no allegation or finding that the assessee had failed to fully and truly disclose all material facts necessary for assessment. In proceedings under the first proviso to section 147, reopening cannot be sustained unless the jurisdictional requirement of such nondisclosure is met. Once the reopening was found without jurisdiction, the issues concerning section 115JB became academic. The Revenue's appeal therefore failed.

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Issues: Whether the notice for reassessment issued beyond four years from the end of the relevant assessment year was without jurisdiction in the absence of any allegation or finding that the assessee had failed to fully and truly disclose all material facts necessary for assessment.

Analysis: The reassessment notice was issued after the expiry of four years from the end of the relevant assessment year. The finding recorded by the appellate authorities was that there was no failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment. In proceedings under the first proviso to section 147, such a reopening cannot be sustained on the basis of facts not shown to meet the jurisdictional requirement. The remaining questions relating to the applicability of section 115JB were rendered academic once the reopening itself was held invalid.

Conclusion: The reopening was held to be without jurisdiction, and the appeal of the Revenue failed.

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