TaxTMI 
TaxTMI 
2011 (11) TMI 365
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....r System (India) Ltd. (respondent-assessee). 2. By the impugned order the tribunal has set aside the reassessment order on the ground that the jurisdictional pre-conditions for initiation of proceedings were not satisfied. Reassessment proceedings had been initiated by the Assessing Officer after recording that the computation of deduction under Section 80HHC was allowed without reducing the deduction claimed and allowed under Section 80IB as required by Section 80IA(9), which is also applicable to Section 80IB. 3. It is not disputed that the original return of income of Rs.2,37,64,670/- was filed on 28.11.2000. The assessment was completed under Section 143(3) at Rs.3,00,51,422/-. There were two subsequent orders under Section 154/14....
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....ssment were initiated after 4 years of end of the financial year, the proviso of Section 147 of the Act is applicable. One of the jurisdictional pre-conditions for reopening assessment in the present case is that there should have been failure or omission on the part of assessee to make true disclosure of material facts. The findings recorded by the tribunal in this regard are as under : "Now, we have to see as to whether there was a failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for the relevant assessment year. In the reasons recorded by the AO for issuing notice u/s. 148 of the Act, the AO has himself stated that on perusal of return of income and annexure thereto filed ....
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....he making the original assessment order u/s. 143(3) of the Act. It is also pertinent to note that even no allegation has been made by the AO in the reasons record for issuing notice u/s. 148 that the assessee had failed to disclose fully and truly all facts necessary for his assessment. It is not the case of the AO made out in the reasons recorded that there was a failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment. Therefore, the initiation of reassessment proceedings u/s. 147 of the Act and issuance of notice u/s. 148 dated 07.03.2006 after the expiry of four years from the end of the relevant assessment year, in the present case, is clearly hit by the proviso to section 147 of t....
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....isclosure of the primary or material facts and not beyond that. It is the obligation of the assessee to disclose fully and truly the primary facts. It is not the obligation of the assessee to indicate and state what legal inference can be drawn from the primary facts. While examining the implication of a similar provision in Section 34 of the Income Tax Act, 1922, the Supreme Court in Calcutta Discount Co. Ltd. vs. ITO, (1961) 41 ITR 191 (SC), had observed: "From the primary facts in his possession, whether on disclosure by the assessee, or discovered by him on the basis of the facts disclosed, or otherwise, the assessing authority has to draw inferences as regards certain other facts; and ultimately, from the primary facts and the furth....
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....assessee had suppressed, misrepresented or falsified the record/facts. It is not alleged that there was any subsequent factual information on the basis of which it was found that the assessee had not fully disclosed the primary facts or had falsified or disclosed incorrect primary facts. 11. Recently in Atma Ram Properties Pvt. Ltd. Vs. DCIT bearing ITA No.87/2010 decided on 11.11.2011 and it has been observed as under : "15. The reasons recorded above do state that the appellant assessee had failed to fully and truly disclose the facts but do not indicate why and how the assessee had failed to make full and true disclosure of the material facts. Mere repetition or quoting the language of the proviso is not sufficient. The basis of th....