TaxTMI 
TaxTMI 
2013 (5) TMI 388
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....petitioner is sought to be reopened. The purported reasons for believing that income had escaped assessment are as under:- "11. Reasons for the belief that income has escaped assessment. 1. In this case assessment under section 143(3) was completed on 24.2.2005 at an income of Rs.5,52,50,73,110/-. The assessee company is a public financial institution engaged in business of providing finance for rural electrifications and is not an industrial undertaking. It has incurred an expenditure of Rs.5,34,20,000/- on account of issue of long term bond / debt instrument. The expense was incurred for borrowing long term debt instruments which give a benefit of enduring nature and hence the assessee should have capitalized the same. But the asses....
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.... be complied with. Mr Syali, the learned senior counsel appearing on behalf of the petitioner, submitted that one of the essential conditions stipulated in the proviso to Section 147 was that there must be an allegation that the assessee had failed to disclose fully and truly all the material facts necessary for his assessment and that because of such failure there has been an escapement of income chargeable to tax. He submitted that it would be evident from the aforesaid purported reasons that there is no such allegation. Consequently, relying on the decision of this court in the case of Haryana Acrylic Manufacturing Company v. The Commissioner of Income Tax IV and Anr.: (2009) 308 ITR 38 (Delhi), he submitted that the impugned notice and ....
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....ture. 4. We have considered the submissions made by the learned counsel for the parties. Insofar as the plea of the learned counsel for the revenue with regard to Section 150 of the said Act is concerned, that issue stands concluded by virtue of our decision in respect of the very same assessee in WP (C) No.7944/2011 and other connected writ petitions decided today itself. We have concluded in those writ petitions that the provisions of Section 150 would not be applicable. The very same conclusions would apply to the present case also. 5. As regards the plea taken by Mr Syali that there is no allegation with regard to the failure on the part of the petitioner to fully and truly disclose all the material facts necessary for the petitio....
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.... recorded that the escapement of income had occurred by reason of failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment, any action taken by the Assessing officer under Section 147 beyond the four year period would be wholly without jurisdiction. Reiterating our view-point, we hold that the notice dated 29.03.2004 under Section 148 based on the recorded reasons as supplied to the petitioner as well as the consequent order dated 02.03.2005 are without jurisdiction as no action under Section 147 could be taken beyond the four year period in the circumstances narrated above." 6. In the present case also, there is no whisper in the purported reasons of the petitioner having failed to ....