TaxTMI 
TaxTMI 
2009 (9) TMI 632
X X X X Extracts X X X X
X X X X Extracts X X X X
....case are that the assessee-opposite party (hereinafter referred to as "the assessee") was a company and was a recognized financial institution. The assessee derived income from interest on finances and financial assistance given to medium and large scale industries in U.P. It also derived income from dividend, securities, deposits, leasing operations, sale of shares and office premises, etc. The assessee filed return of income on November 29, 1996, declaring total income at Rs. 2,07,07,980. The return was processed under section 143(1)(a) of the Act on November 17, 1997, determining income at Rs. 2,13,88,621 after making certain adjustments. Subsequently, assessment order under section 143(3) of the Act was passed on January 4, 1999, assess....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion 36(1)(viii) of the Act on the business income of Rs. 1,51,76,118 at the rate of 40 per cent. The income from business or profession as arrived at as above while passing an order on February 16, 2001, included the income from leasing operations amounting to Rs. 2,56,52,516. These incomes were not includible in the long-term finance as mentioned in the provisions of the Act for computing deduction under section 36(1)(viii) of the Act. If the income of Rs. 3,59,98,984 (2,56,52,516 - 1,03,46,468) is reduced from the income determined, the income from the business of the long-term finance as required under the provisions of section 36(1)(viii) of the Act will arrive at in the negative and there will be no deduction under section 36(1)(viii)....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssee to disclose fully and truly all material facts necessary for that assessment year. There is no dispute that the assessment in this case was made under section 143(3) of the Act. Therefore, the only question is whether the assessee at the time of original assessment disclosed fully and truly all material facts necessary for its assessment for the assessment year under consideration. We have already extracted reasons which have been recorded by the Assessing Officer. On a perusal of the reasons recorded, it is evident that it is not the case of the Assessing Officer that any income that had escaped assessment on account of omission or failure on the part of the assessee to disclose fully and truly all material facts necessary for its ass....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r India Limited [2002] 256 ITR 1 that when a regular order of assessment is passed under section 143(3) of the Act, a presumption could be raised that such an assessment order has been passed with due application of mind. We are of the considered view that the same analogy is applicable in the case before us that the Assessing Officer, when passed assessment order under section 143 of the Act, had considered with due application of mind the claim of the assessee under section 36(1)(viii) of the Act. Not only this, we observe, as mentioned hereinabove, that there is no averments by the Department in the reasons recorded that there was any failure on the part of the assessee to disclose fully and truly all material facts necessary for assessm....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... do not find any error in the order of the Tribunal. Section 147 of the Act reads as follows : "147. Income escaping assessment.-If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year)....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hat the assessee had failed to disclose fully and truly all material facts necessary for his assessment and no observation has been made in this regard. On the basis of the same material which was available on record, the assessing authority was of the view that the deduction had been wrongly allowed under section 36(1)(viii) of the Act. The Tribunal observed that the assessee had furnished the requisite details in respect of leasing income and upfront fee as received in the assessment year under consideration and the same was duly disclosed in the audited profit and loss account, as is evident from pages 4 and 5 of the paper book read with page 23 of the paper book and also computation of income filed along with return, a copy of which is ....