TaxTMI 
TaxTMI 
2015 (2) TMI 330
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....#39;the Act') on scrutiny of the case records by the Assessing Officer for making addition towards alleged unexplained cash credits under section 68 of the Act. 2.1 Notices u/s 148 was issued on 07.03.2000 on the same subject matter and the assessees objected the jurisdiction of the Assessing Officer for invoking proceedings under sections 147 and 148 of the Act to reopen the completed assessment beyond four years. On merit also the assessees submitted that no addition is maintainable towards alleged unexplained cash credits. The Assessing Officer disregarded the contention of the appellant and framed reassessment by making addition towards unexplained cash credit. 2.2 Being aggrieved by the order of the Assessing Officer the assessees preferred appeals before the CIT(A) who concluded that the assessment sought to be opened u/s 147 & 148 was barred by limitation due to proviso to section 147 of the Act. The revenue, preferred appeals before the Tribunal and the Tribunal vide impugned orders reversed the findings of CIT(A) and observed that the Assessing Officer was justified in reopening the assessment u/s 148 of the Act as well as making addition under section 68 of the Act. B....
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....tion (3) of section 143 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year 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 his assessment, for that assessment year: Provided further that the Assessing Officer may assess or reassess such income, other than the income involving matters which are the subject matters of any appeal, reference or revision, which is chargeable to tax and has escaped assessment. Explanation 1.-Production before the Assessing Officer of account books or other evidence from which material evidence could with due diligence have been discovered by the Assessing Officer will not necessarily amount to disclosure within the meaning of the foregoing proviso. Explanation 2.-For the purposes of this section, the following shall also be deemed to be cases where inc....
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....n the part of the assessees to disclose material facts necessary for his assessment. From the perusal of assessment order as well as assessment records there seems to be no evidence whatsoever to conclusively prove that the cash credits of the assessees were not genuine. The entire information available at the time of reassessment was also available at the time of original assessment as well and the Assessing Officer while completing the original return had accepted the cash credits as genuine in the assessment framed u/s 143(3). 6. In this regard we are supported by the decisions of the Apex Court in the case of Parshuram Pottery (supra) wherein the Apex Court has held as under: "It has been said that the taxes are the price that we pay for civilization. If so, it is essential that those who are entrusted with the task of calculating and realising that price should familiarise themselves with the relevant provisions and become well versed with the law on the subject. Any remissness on their part can only be at the cost of the national exchequer and must necessarily result in loss of revenue. At the same time, we have to bear in mind that the policy of law is that there must be a....
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....the facts emerging on record, there is nothing to indicate that the petitioner has withheld any particulars. The successor Assessing Officer has verified the same record to come to the conclusion that there is escapement of income which could have been done at the initial stage itself. There is nothing on record to indicate any omission on the part of the assessee in fulfilling any obligation in law. Whether the Assessing Officer while framing original assessment had failed to work out the tax liability correctly or not, the assessee cannot be charged for any omission. In case the assessee had laid a claim to a particular amount, it was the job of the Assessing Officer to correctly compute the tax liability. Merely making a claim cannot be stated to be non-disclosure of material facts so as to vest in the Assessing Officer jurisdiction under section 147 of the Act. Besides, as already noted hereinabove, the respondent seeks to reopen the assessment after a period of four years from the end of the relevant assessment year. In the reasons recorded, there is nothing to indicate that the assessee has failed to disclose fully and truly all material facts necessary for its assessment for....