TaxTMI 
TaxTMI 
1990 (8) TMI 86
X X X X Extracts X X X X
X X X X Extracts X X X X
.... to as "the Act"). The statements of fact were made on the following common question of law: "Whether, on the facts and in the circumstances of the case, the non-disclosure by the assessee relating to the nature of investments would bring him within the provisions of section 147(a) ?" The assessment in respect of the assessee was completed under section 143(3) of the Act for the assessment year ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....oing into the facts, held that notice under section 147(a) of the Act is bad on account of the fact that there is no non-disclosure of material facts which is the pre-condition for exercise of power under section 147(a) of the Act. Aggrieved by the decision, the Department filed applications under section 256(1) of the Act and a statement of the case has been made for both the years on the questio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ingly, the Income-tax Officer has jurisdiction to reopen the assessment under section 147(a) of the Act. As regards the year 1962-63, Mr. Ray submitted that there being absolutely no indication that he is a partner of the firm, it is a clear case of non-disclosure. Law is now settled that all material facts are to be disclosed by an assessee and non-disclosure of the same authorises the Income-ta....
X X X X Extracts X X X X
X X X X Extracts X X X X
....urces for the amount invested may lead to various inferences. However, non-disclosure of inferential facts do not attract section 147(a). The Tribunal is right in allowing the appeal for the year 1963-64. Non-disclosure of the fact that the assessee is a partner of M/s. Narula Cold Storage and Ice Factory is a non-disclosure of material fact and the Income-tax Officer was justified in reopening t....