TaxTMI 
TaxTMI 
2011 (2) TMI 509
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....cts of the case as appearing in the petition are that the petitioner has been using boilers for the last several years and claimed 100 per cent depreciation in respect thereof in the year in which the petitioner for the first time installed and used the same. In the assessment year 1994-95, the petitioner claimed total deprecation of an amount of Rs. 68,82,360 in respect of the boilers as per the statement of deprecation which was annexed along with the return filed on 30-11-1994. During the course of assessment proceedings, by letter dated 22-1-1997, the petitioner supplied break up of the total additions of machinery during assessment year 1994-95 amounting to Rs. 3,55,02,968 including therein the additions of two boilers of Rs. 32,52,975....
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....-95. 3. Mr. J.P. Shah, learned advocate appearing on behalf of the petitioner submitted that the assessment year under consideration is 1994-95, whereas the notice under section 148 of the Act has been issued on 8-3-2001, which is clearly beyond the period of four years from the end of the relevant assessment year and as such, the proviso to section 147 of the Act would be applicable. It was submitted that in the circumstances, for the purpose of invoking jurisdiction under section 147 of the Act, two requirements are required to be satisfied. Firstly, that income has escaped assessment and secondly, that such escapement is by reason of failure on the part of the assessee (i) to make a return under section 139 or in response to a notice ....
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....into an under-assessment. It was submitted that in the absence of any failure on the part of the petitioner to disclose fully and truly all material facts necessary for its assessment, the assumption of jurisdiction on the part of the Assessing Officer is invalid and as such, the impugned notice under section 148 of the Act is required to be quashed and set aside. 4. Mr. M.R. Bhatt, learned Senior Advocate appearing on behalf of the respondent vehemently opposed the petition. Inviting attention to the reasons recorded, it was submitted that the reasons recorded are three fold. Firstly, that the petitioner had availed depreciation in respect of the main boilers as well as the accessories at the rate of 100 per cent, whereas in respect of ....
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....Discount Co. Ltd. v. ITO [1961] 41 ITR 191, it was submitted that the Court has held that the omission on the part of the assessee to bring to the Assessing authority's attention those particular items in the account books or the particular portion of the documents which are relevant, will amount to "omission to disclose fully and truly all material facts necessary for its assessment". That it is the assessee's duty to disclose all primary facts - including particular entries in account books, particular portions of documents and documents, and other evidence, which could have been discovered by the assessing authority, from the documents and other evidence disclosed. It was submitted that in the facts of the present case, the petitioner ha....
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....esent case, the first condition admittedly does not exist. In the circumstances, for the purpose of assumption of jurisdiction, the Assessing Officer is required to record satisfaction that the income chargeable to tax has escaped assessment by failure on the part of the petitioner to disclose fully and truly all material facts necessary for its assessment for the assessment year under consideration. 7. Examining the facts of the present case, in the light of the aforesaid statutory requirement, a perusal of the reasons recorded indicates that the Assessing Officer has recorded as many as three grounds in relation to which he has recorded the belief that the income has escaped assessment. Insofar as the satisfaction regarding failure to ....
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....ish true and correct affairs of the company, there is nothing whatsoever in the reasons recorded to indicate the nature of the omission and as to which facts had not been truly and fully disclosed. Hence, on a plain reading of the reasons recorded, it is apparent that there is no material on record on the basis of which the Assessing Officer could have recorded the satisfaction as regards income having escaped assessment by reason of failure on the part of the petitioner to furnish true and correct affairs of the company. 8. On behalf of the respondent, reliance has been placed upon the affidavit in reply filed in response to the petition wherein various facts have been stated regarding the failure on the part of the petitioner to disclo....