TaxTMI 
TaxTMI 
2012 (11) TMI 1087
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....ax (A) has erred in giving relief of addition to the tune of ₹ 55,15,000/- made by the Assessing Officer on account of income from undisclosed sources. ii) The Ld. Commissioner of Income Tax (A)-II, New Delhi has erred as he held that initiating of proceeding u/s. 147 r.w. 148 are not as per the condition and procedure prescribed in the Act and the reassessment proceedings initiated by the Assessing Officer u/s. 148 are illegal as the notice has been issued after four years from the end of the assessment year and the issue in question has already been discussed in the assessment proceedings u/s. 143(2). iii)(a) The order of the Ld. Commissioner of Income Tax (A)-II, New Delhi is erroneous and not tenable in law and on facts. (b) Th....
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.... with Richie Rich. - Confirmation of Richie Rich obtained sometime after end of F.Y. 2000-01 (A.Y. 2001-02) The credit of 'Richie Rich' was examined during Income Tax proceedings u/s. 143(3) by then Assessing Officer and inflow of ₹ 1.07 crores from Richie Rich was examined by him and mentioned in his assessment order u/s. 143(3) of I.T. Act. Copy of order u/s. 143(3) for A.Y. 2001-02 is enclosed. The credit pertained to a period of more than 6-7 years. The amount was repaid more than 6 years ago and after that the assessee has no dealing with the said party. However, the confirmation obtained then is enclosed." 3.1 The Assessing Officer was not satisfied with the above explanation. He held that the above explanation tendered by ....
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....x (A) opined that the above established that the Assessing Officer in the original assessment had a clear and detailed occasion to consider this issue which has now been made subject matter of reassessment. Ld. Commissioner of Income Tax (A) further observed that during the original assessment proceedings assessee had filed the following evidences on the same issue:- (i) Details of unsecured loans with confirmations. (ii) Details pertaining to M/s Richie Rich Overseas (P) Ltd. with confirmation. (iii) Copy of ITR, ledger account etc. (iv) The Assessing Officer had even issued summons to one M/s Mahan Enterprises who filed the response dated 18.12.2003 regarding the same transactions with M/s Richie Rich. 4.1 Ld. Commissioner of Income ....
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....lso any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year)." Provided that where an assessment under sub-section(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 year 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 ....
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....me chargeable to tax has escaped assessment, it must also be established as a fact that such escapement of assessment has been occasioned by either the assessee failing to make a return under section 139, etc. or by reason of failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment, for that assessment year. 8. We further find that Hon'ble Jurisdictional High Court in the case of Haryana Acrylic Manufacturing Co. vs. C.I.T. & Anr. (308 ITR 38) has held as under:- "Action under section 147 of the Income Tax Act, 1961, can be taken after the expiry of four years from the end of the relevant assessment year only if any income chargeable to tax has escaped assessment for such assessment y....
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.... on the part of the assessee to disclose material facts fully and truly. This is a necessary conditions for overcoming the bar set by the proviso to section 147. If this condition is not satisfied, the bar would operate and no action under section 147 could be taken." 9. We further find that the Ld. Commissioner of Income Tax (A) has given a finding in this regard that the Assessing Officer has issued detailed questionnaire in the original assessment in this regard and the detailed reply to which was given by the assessee. It is further noted that assessee has submitted the conformation from M/s Richie Rich, copy of acknowledgement, income tax return of M/s Richie Rich and copy of ledger account in the course of original assessment. Ld. Co....