2013 (6) TMI 164

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....background : The petitioner is a cooperative Bank in liquidation. For the Assessment Year 2005-06, the petitioner had filed its return of income on 31st October 2005 declaring a total loss of Rs. 7,95,82,108/=. Such return was taken in scrutiny. The Assessing Officer on 27th December 2007 framed scrutiny assessment under section 143 (3) of the Act and accepted the return of the assessee. It is this assessment which the respondent desire to reopen and for which a notice, beyond the period of four years from the end of relevant assessment year came to be issued. The petitioner was supplied the reasons for issuing such notice, which read as under :- "The assessee is an AOP [Cooperative Bank] engaged in the business of banking, had fil....

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.... banking business or any other business activity after A.Y 2004-05 as such it should have declared the loss of Rs. 7,95,82,108/= under the had "Income from other sources" and not under the head "Profits and Gains of business or profession". Thus, by reason of failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment, the income has escaped assessment within the meaning of section 147 of the Act. 3. In view of the above facts, I have reason to believe that the income of Rs. 7,95,82,108/= assessed as loss under the had "Profit and Gains of business or profession" as against the head "Income from other sources" has escaped assessment for A.Y 2005-06 within the meaning of section 147 of t....

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....820/03 dated 28/7/03. The Banking license issued by Reserve Bank of India is cancelled with effect from 30/7/03 and accordingly the activities of banking society is carried out only for recovery of advance and payment to depositors. Keeping in view liquidation order of the banking society, the P & L A/c. is prepared on following conditions and guideline." The fact that the petitioner's license for banking was cancelled by the Reserve Bank of India was thus clearly and in no uncertain terms was brought on record in the return filed by the petitioner. The petitioner in fact asserted that in view of such cancellation of license, the banking activities of the petitioner society was carried out only for the purpose of recovery of advances ....