TaxTMI 
TaxTMI 
1999 (11) TMI 59
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....O"), under the head "Current liability" as advance received from the FUO. In the course of the assessment proceeding, the Assessing Officer issued notice on the company in exercise of power under sections 142(1) and 143(2)(b) of the Act. In response to the same, the chief executive of the petitioner-company appeared before the assessing authority from time to time and produced the books of account, etc., to complete the assessment. The Assessing Officer finalised the assessment for the year 1985-86 and by an order dated January 27, 1988, made assessment for the year 1985-86 and showing the income as nil. The petitioner-company preferred an appeal before the Commissioner of Income-tax (Appeals) questioning certain addition and disallowance of various claims. The Commissioner of Income-tax (Appeals) by its order dated October 28, 1988, upheld the order of assessment except on the point of qualification of admissible "investment allowances". The Assistant Commissioner of Income-tax, Special Circle-II, appellant No. 2 herein by its letter dated February 8, 1989 (annexure 3), intimated the petitioner-company that there had been no disclosure of certain material fact in respect of advanc....
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....advance received from the Forest Utilisation Officer". The assessing authority prior to completion of the assessment, issued notice to the petitioner under sections 142(1) and 143(2) of the Act, pursuant to which books of account of the petitioner-company had been produced before the assessing authority. The assessing authority went through the same. The Chief Executive Officer of the company also personally appeared and explained to the assessing authority all the relevant facts and circumstances. The company also produced the records before the FUO. On examination of the materials on record the learned single judge came to a positive conclusion that the assessee had furnished all the materials necessary for assessment and, therefore, the impugned notices as enjoined in annexure 5, was unsustainable and quashed. The learned single judge also found fault on the part of the authority so much so, according to the learned single judge the power to issue notice under section 147 of the Act is given to the Income-tax Officer. According to the learned single judge, the office of the Income-tax Officer is defined under section 2(25) of the Act. The learned single judge on that count also ....
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....e learned single judge is per se unsustainable under the law. Mr. Joshi, learned senior counsel, in support of his contention referred to the scheme of the income-tax and drew our attention, more particularly to section 2(7A), section 2(25) and sub-section (1) and sub-section (2) of section 120 of the Act. Mr. Joshi, learned senior counsel further drew our attention to Notification No. 2(C) of 1988-89, dated 14th June, 1988, issued from the office of the Commissioner of Income-tax, NER, Shillong, that the authorised officer mentioned in the said notice shall concurrently exercise all the powers and perform all functions assigned to or conferred on the Assessing Officer by or under the Act in respect of areas or in respect of persons or classes of persons and/or incomes or classes of incomes, etc. Mr. R. Gogoi, learned senior counsel for the respondents fairly conceded to the submission of the Revenue as to the competence of the authority. On consideration of the statutory provision read with the notification and all other aspects of the matter, we are of the view that the Assistant Commissioner of Income-tax as well as the Deputy Commissioner of Income-tax (Assessment), Special Ra....
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....IT [1973] 91 ITR 208 (All) ; Mohammed Serajuddin and Brothers v. ITO [1980] 122 ITR 465 (Cal); Jatindra Nath Sarmah v. ITO [1978] 113 ITR 898 (Gauhati); STO v. Uttareswari Rice Mills [1973] 89 ITR 6 (SC) and CIT v. Mahesh Chand [1993] 199 ITR 247 (All)). Mr. Ranjan Gogoi, learned senior counsel appearing on behalf of the respondent-company, pointedly referred to the materials on record and submitted that the materials on record did not justify for holding a requisite belief of the assessing authority for assuming jurisdiction under section 148 of the Act. Mr. Gogoi, learned senior counsel, after referring to the factual matrix, submitted that there was no omission on the part of the respondent-company in disclosing truly the correct income or any other material information required for computation of the correct taxable income, Mr. Gogoi, learned senior counsel, has submitted that the return of income filed by the petitioner-company for the assessment year in question was accompanied by the profit and loss account and all other particulars showing truly and fully all materials and primary facts necessary for assessment of the income of the respondent-company for the assessment yea....
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.... 103 ITR 437 (SC). Sections 147 and 148 of the Act deal with income escaping assessment and issuance of notice where income escaped assessment. Section 151 relates to sanction for issuance of notice. On a perusal of the scheme of the above provisions it appears that the Income-tax Officer acquired jurisdiction to issue notice under section 148 in respect of the assessment beyond the period of four years but within a period of eight years from the end of the relevant year when the Income-tax Officer has reason to believe that income chargeable to tax has escaped assessment and has reason to believe that such income has eluded assessment by reason of failure to make a return under section 139 for the assessment year or to disclose fully or truly the materials facts necessary for that year. Both the aforesaid conditions must be present to confer jurisdiction on the Income-tax Officer. It is equally obligatory for the Income-tax Officer to record his reason before initiating a proceeding under section 148(2). Needless to state that the obligation on the assessee is to make a true and full disclosure of the primary facts at the time of original assessment. Mere production of the accoun....