TaxTMI 
TaxTMI 
2017 (12) TMI 673
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.... August 2017 passed by the Income Tax Officer, Ward-4, Margao, Goa reopening the assessment under Section 147 of the Income Tax Act, 1961,. 3. The Petitioner is an individual. The Petitioner had filed Income Tax Returns for the Assessment Year 2010-11 on 30 March 2011. The Petitioner declared his income as Rs. 1.70 Crore as on 30 March 2017. He had shown Capital Receipt of Rs. 1.30 Crore. Respondent No.1-Deputy Commissioner of Income Tax issued a Notice under Section 148 of the Act, seeking to reopen the assessment for the Assessment Year 2010-11. On 7 April 2017, the Petitioner replied to the Notice and sought reasons for reopening the assessment. The reasons were supplied to the Petitioner by Respondent No.1 on 24 July 2017. The Petiti....
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....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. As per the proviso, if the assessment is sought to be reopened after the period of four years, then one of the ingredients to be fulfilled is that the Assessee should have failed to disclose fully and truly all material facts necessary for the assessment of that particular year for which the assessment is sought to be reopened. 7. Since the assessment in question is of the year 2010-11 and the notice has been issued by the Respondent No.1 on 30 March 2017, it is beyond period of four years. Thus the proviso to Section 147 comes into play. Though the time limit for notice for an amount of one ....
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....ter a period of four years on the ground that the assessee failed to make full and true disclosure of all necessary facts, then, the Assessing Officer must state so in the reasons and the action must be founded on such reason. 9. In the present case, the reasons given by the Respondent- Officer are as under : " The assessee Shri Cedric De Souza Faria had filed his return of income for AY 2010-11 declaring total income of Rs. 3,70,980. During the assessment proceedings of M/s. Kala Mines and Minerals for AY 2010-11, it is seen by the AO that the above firm has advanced Rs. 1.30 Cr. to Shri Cedric De Souza Faria for the purpose of purchase of land at Quepem vide agreement dated 27/07/2009. Subsequently the above party could no....
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.... proceedings in respect of M/s. Kala Mines was decided in appeal and the issue of bad debts was resolved, the Respondent came to know about the income that has escaped assessment and the Petitioner ought to have placed these orders on record. We are not inclined to agree with these submissions. What the proviso to Section 147 postulates is material which was necessary for assessment, which the Assessee failed to fully and truly disclose. There is no clear statement in the reasons as to which material the Petitioner failed to disclose. On the Department's own showing in view of subsequent events that is the appeal of M/s. Kala Mines being allowed, that the reopening of the assessment was necessary. Even in the order, there is no referenc....