1990 (8) TMI 121

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....ution of India, the petitioner-company has challenged the jurisdiction of the Income-tax Officer to issue notices under section 148 read with section 147(a) of the Income-tax Act, 1961, for the assessment years 1983-84 and 1984-85. The assessment for the assessment year 1983-84 was originally completed under section 143(3) on October 31, 1985. The assessment for the assessment year 1984-85 was ....

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....s in the cases of CIT v. Burlop Dealers Ltd. [1971] 79 ITR 609 and ITO v. Madnani Engineering Works Ltd. [1979] 118 ITR 1. Dr. Balasubramanian stated on behalf of the Department that the two decisions relied upon by learned counsel for the petitioner were not applicable in this case. In both those cases, the Incometax Officer had, during the course of original assessment proceedings, accepted the ....

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.... decision in the light of the two Supreme Court decisions relied upon by Shri Dastur for the petitioner. It is true that in Burlop Dealers Ltd. [1971] 79 ITR 609, the Supreme Court has held that after an assessee has disclosed material facts fully and truly, it was for the Income-tax Officer to draw correct inference therefrom. If he had drawn one inference at the time of original assessment, it w....

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....l facts by not confessing before the Income-tax Officer that the hundis and the entries in the books of account showing the payment of interest paid by it were bogus. In Burlop Dealers Ltd.'s case [1971] 79 ITR 609 (SC), the assesseecompany had disclosed a profit of Rs. 1,75,875 from a joint venture and claimed that half of it was paid to one R under an agreement dated October 7, 1948, for fina....