1990 (7) TMI 169

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....for the proceedings, we proceed to dispose of the same without going into the grounds on merits taken out by the assessee. 3. The factual position which emerges from the papers filed before us and which was, in fact, projected to the authorities below is as under. 4. This factual position is very important and has to be kept in focus in determining the issue of legality of the proceedings under s. 147(a). 5. For the asst. yr. 1972-73 the assessee had filed return on19th Aug., 1974declaring income at Rs. 6,000 and he had been accordingly assessed under s. 143(3) on28th Aug., 1974by the ITO, Dist. VI(10), Addl.New Delhi. For the asst. yr. 1973-74 an assessment under s. 143(1) had been made by the ITO, Dist. VI(2) and VI(10), Addl.,Ne....

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.... assessee on receipt of which the learned counsel for the assessee wanted to have the reasons recorded and projected to the assessing authority the judgment of the Hon'ble Delhi High Court in the case of New Bank of India Ltd. vs. ITO & Anr. (1980) 15 CTR (Del) 84 : (1982) 136 ITR 679 (Del) to emphasise that it is the duty of the assessing authority to provide the reasons for reopening of the assessment to the assessee. It appears that the learned counsel for the assessee had to seek inspection of the record as no reasons recorded were supplied. This becomes clear from the letters dt.27th Feb., 1986and11th March, 1986appearing at pages 8 and 9 of the assessee's paper book. In the letter dt.11th March, 1986, the learned counsel for the asses....

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....lly the notice was issued for the purpose of 'assessing income which had escaped assessment. It was on a later stage that it became a case of reassessment. ITO and his action on this point in confirmed." To our mind is, this neither here not there. Therefore, the assessee is rightly aggrieved that the learned Commissioner erred in not declaring proceedings under s. 147(a) as ab initio void. 9. Under s. 147(A) if the ITO has reason to believe that by reason of the omission or failure on the part of an assessee to make a return under s. 139 for any assessment year to the ITO or to disclose fully and truly all material facts necessary for his assessment for that year, income chargeable to tax has escaped assessment for that year, he may iss....