TaxTMI 
TaxTMI 
1991 (8) TMI 4
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....meaning of section 147 of the Act. The company was called upon to show cause why it should not be reassessed to income-tax for the said year. The appellant-company challenged the notice by way of writ petition under article 226/227 of the Constitution of India before the Nagpur Bench of the Bombay High Court. The High Court, by its Judgment dated August 5, 1975, dismissed the writ petition with costs. This appeal via special leave petition is against the said judgment of the High Court. The relevant facts are stated hereinafter. The appellant is a non-resident company having its office in London. It has its office in India at Nagpur. The appellant is assessed to income-tax at Nagpur and it has been the practice of the appellant-company to ....
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....e appellant-company was indulging in under-invoicing. The Income-tax Officer, on coming to know about the pendency of proceedings before the Collector of Customs, issued a notice dated March 20, 1970, under section 148 of the Act. In the notice, the reasons on the basis of which he entertained the necessary belief as required under section 147 of the Act were not given. However, along with the return filed on behalf of the Revenue before the High Court, the reasons which led to the issue of notice under section 148 on the grounds mentioned under section 147(a) of the Act were disclosed. It is not disputed that the reasons need not be set out in the notice and the same can be produced before the court. Section 147 of the Act provides for a....
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....o tax had escaped assessment. According to him it was not the practice with the appellant to produce the account books from their head Office in London before the Income-tax Officer. The appellant company produced before the Income-tax Officer the balance-sheets, profit and loss accounts and all other necessary records required for the purpose of assessment. According to learned counsel the only material before the Income-tax Officer was the original order of the collector of customs. wherein it was held that the appellant had indulged in under-invoicing, resulting in declaring lesser price than the prevailing market price. Learned counsel contended that the order of the collector could, at the most, be information within the ambit of secti....
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....t did not produce the books of account kept by them at their head office in London nor the original contracts of sale which were entered into at London with the buyers . The appellant did not produce before the Income-tax Officer any of the accounts which related to the foreign buyers. No reasons were given for the supply of manganese ore at a rate lower than the market rate. It is for the assessee to disclose all the primary facts before the Income-tax Officer to enable him to account for the true income of the assessee. The proven charge of under-invoicing per se satisfies the second condition'. The appellant's assessable income has to be determined on the basis of the price received by it for the goods exported. If the true price has not....