2007 (6) TMI 183

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....n 143(3) of the Act and reopened the same with prior permission of the Commissioner of Income-tax and issued notice under section 148 of the Act and passed orders. Aggrieved, the assessee went on appeal to the Commissioner of Income-tax (Appeals), who dismissed the appeals. On further appeals, the Tribunal holding that the notice under section 148 of the Act was issued after the expiry of four years from the end of the relevant assessment year and the same would amount to change of opinion, allowed the appeals. Hence, the above appeals raising the following substantial question of law : "Whether the Assessing Officer is empowered to reopen an assessment based on a subsequent Supreme Court decision?" 3. It is fairly conceded by t....

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....rect Tax Laws (Amendment) Act, 1987. Two sets of provisions were available under section 147 in clause (a) and clause (b). This distinction has now been taken away by the Amendment Act. Previously, the line of distinction was a limitation period of four years and the limitation period exceeding four years. The Assessing Officer would reopen a back assessment within a period of four years as long as he had reason to believe in consequence of any information, that income has been under assessed or income has escaped assessment. In the case of limitation, providing for a period exceeding four years, there should have been a failure on the part of the assessee to disclose fully and truly all mate rial facts leading to the escapement of income. ....

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.... considered the above proviso to section 147 of the Act and held as follows : 'Even now, before us, the Revenue could not contend that the reassessment is framed on submission of new material or information. Admittedly, the reassessment proceedings are initiated after four years as provided under the proviso to section 147 of the Act. There is no charge that income chargeable to tax has escaped from assessment by reason of the failure on the part of the assessee to disclose fully and truly material facts necessary for assessment. The hon'ble apex court in the case of CIT v. Foramer France reported in [2003] 264 ITR 566 has clearly laid down the principle that where there is no failure on the part of the assessee to disclose....