1999 (7) TMI 53

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....income for the assessment year 1985-86 declaring total income at Rs. 5,000. Later on, a revised return was filed showing loss of Rs. 1,01,023. After scrutiny of the petitioner's case under section 143(3) of the Act, an assessment order, annexure B, came to be passed, which was challenged by preferring an appeal before the Commissioner of Income-tax (Appeals), which was pending at the relevant time. On or about December 17, 1990, the Assessing Officer, vide annexure C, called upon the petitioner to furnish certain information which was sent by the petitioner on March 6, 1991. The petitioner, in the return indicated long term capital loss of Rs. 2,25,575. The cost of silver articles was indicated in the return as Rs. 5,05,027. According to....

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.... of the assessee to disclose fully and truly all material facts necessary for his assessment for that assessment year. Mr. Soparkar submitted that it is not the case of the Department that the petitioner has suppressed any material fact which would suggest that the petitioner failed to disclose fully and truly all material facts necessary for his assessment for that assessment year. In view of the aforesaid submissions, Mr. Soparkar submitted that the court should quash the notice at annexure A. Mr. B. B. Nayak, learned counsel, submitted that in the instant case, the price of silver which was shown by the petitioner in the return was not correctly shown, and in his submission, the amount of interest paid by the petitioner towards the....

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....as been increased by the amount of capitalised interest of Rs. 1,60,016 on borrowed funds to be utilised for business purposes. Thus, it is clear that the material was before the Assessing Officer. Thus, it is the Department's case that the claim of the capitalisation of interest in the computation of capital gain is incorrectly allowed. There is no material placed on the record to show that the petitioner has suppressed any material fact or has failed to disclose fully and truly all material facts necessary for his assessment. The fact that material facts were furnished indicate that the assessee has not suppressed any material fact. From the reasons placed on record, it clearly appears that the Assessing Officer has considered the amount ....