TaxTMI 
TaxTMI 
2012 (6) TMI 385
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....tion 10(17a) of the Income Tax Act. The original assessment was completed under Section 143(3) of the Income Tax Act on 7.9.1995 and the loss was determined at Rs.38,960/-. Admittedly, the receipt of the award money was disclosed in the balance sheet under the head of "Notes on Account". However, during the course of audit, the audit parties pointed out the error that excess deduction/ relief has been granted to the assessee company on the price money, it being given by Earth Vision, 1992,Tokyo Global Entertainment Film Festival and not from the Government of India. The assessment was sought to be re-opened. Notice under Section 148 of the Act was issued on 26.5.2001. The assessee resisted the said notice by taking objection as to the limitation as provided in proviso to Section 147 of the Act. The assessee pointed out that since there was no failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment, as per Section 147 of the Act, reopening of the assessment beyond the period of four years from the end of relevant assessment year was bad in law. However, the claim of the assessee on the jurisdictional aspect as well as, as regards t....
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.... assessee. 7. As far as the observation of the Tribunal on the audit party's alleged interpretation on law is concerned, we do not find any basis or ground for such a view, since nowhere in the order of the Commissioner of Income Tax (Appeals), we see any observation that the audit party had interpreted the provisions of the Income Tax Act nor does the order of the Assessing Officer refer to the audit party's view on any provision of the Act to lead the Assessing Officer to reopen the assessment. However, on the factual issue as to whether the escapement of income from taxation was on account of the failure of the assessee from disclosing truly and fully all material facts, the Tribunal came to the conclusion that there was no ground made out to hold that there was no full and true disclosure of all material facts on the side of the assessee, warranting reopening of the assessment. Hence, hit by proviso to Section 147 of the Act, the reassessment proceedings was liable to be set aside. 8. Aggrieved by the order of the Tribunal, the Revenue is on appeal before this Court. 9. Learned counsel appearing for the Revenue placed reliance on the decision reported in [2001] 252 ITR....
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....period. If any action to be taken beyond the four years' time limit, as per the proviso, the Assessing Authority has to satisfy that the income chargeable to tax has escaped assessment by reason of the failure on the part of the assessee to make a return under Section 139 or in response to a notice issued under sub-section (1) of Section 142 or Section 148 or to disclose fully and truly all material facts necessary for assessment. Explanation (1) of Section 147 states that mere production of books of accounts and other evidence from which material evidence could have been discovered by the Officer would not amount to disclosure within the meaning of the proviso. The sum and substance of the Explanation is that the assessee cannot contend that it had disclosed the full particulars by mere production of the accounts books or other evidence. It is the duty of the assessee to place all the materials, fully and truly, which are necessary for the purpose of grant of relief. In the event of failure on the part of the assessee to disclose fully and truly all material facts by placing necessary account books and other evidence, it is open to the Assessing Officer to assume jurisdiction to i....
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.... the facts. The Tribunal also pointed out to the production of 'Notes of accounts' to hold that the assessee had fully and truly disclosed all material facts in the annexure to the balance sheet filed along with return. Thus, the Tribunal rightly held that the reassessment proceedings taken beyond the period of four years without any tangible materials, is bad in law. 14. Section 147 of the Income Tax Act came up for consideration before this Court in the decision reported in [2006] 286 ITR 674 - CIT v. ELGI FINANCE LIMITED as well as in [2010] 320 ITR - CIT v. KELVINATOR OF INDIA LIMITED. The decision reported in [2006] 286 ITR 674 - CIT v. ELGI FINANCE LIMITED was applied in the decision of this Court reported in [2008] 306 ITR 136 - CIT v. T.N.TRANSPORT DEVELOPMENT FINANCE CORPORATION LTD., wherein this Court pointed out to the law relating to the reassessment proceedings. This Court, in the decision reported in [2006] 286 ITR 674 - CIT v. ELGI FINANCE LIMITED, pointed out that mere escapement of income, by itself, is insufficient to justify the initiation of reassessment proceedings after the expiry of four years from the end of the assessment year. This Court held that such....