TaxTMI 
TaxTMI 
TaxTMI 
2022 (2) TMI 158
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....48. The appellant contends that there is no tangible material brought on record for alleging income escaping assessment. Consequently, the reassessment order is wrong and bad in law, illegal, arbitrary and without jurisdiction and has to be quashed. 2. The appellant contends that there is no omission or failure on the part of the assessee in disclosing full and true particulars of income. Hence, the reassessment is wrong and bad in lawand has to be annulled. 3. The re-assessment proceedings are based on mere change of opinion on an already completed assessment u/s. 143(3) and therefore are without jurisdiction and should be cancelled. 4. The CIT(A) has erred in law and on facts in disallowing the claim of performance warranty. The app....
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.... back to the income of the assessee. (ii) While making computations under special provisions of the Act, an amount of Rs. 5442191/- on account of deferred tax was reduced from the book profit as negative adjustment as per clause (a) of explanation of sub sec. (2) of the Act. This deduction was not admissible under section 115JB. In view of the above facts, I have therefore, reason to believe that by reason of omission or failure on the part of the assessee to disclose truly and fully all material fact, necessary for assessment and by claiming wrong deductions, income chargeable to tax has escaped assessment." 6. A perusal of the aforementioned reasons shows that there is no reference to there being any failure on the part of the assess....
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....art of the assessee to disclose fully and truly all material facts necessary for his assessment for that year. Both these conditions are conditions precedent to be satisfied before the Assessing Officer could have jurisdiction to issue a notice for the assessment or reassessment beyond a period of four years. Such duty would not extend beyond true and full disclosure of material facts. Once such primary facts are before the Assessing Officer, he requires no further assistance by way of disclosure. It is for him to decide what inferences of facts can be reasonably drawn and what legal inferences have ultimately to be drawn. It is not for the assessee to tell the assessing authority what inferences, whether of facts or of law, should be drawn....
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....r 1974. In the facts of the present case, it could never be said by any stretch of imagination that in the year 1983 when the assessee filed return claiming investment allowance on the capitalisation of interest paid after the date on which the machinery was first installed and put to use, the assessee had failed to disclose all material facts. On the contrary, the assessee would have got the benefit of the entire interest amount for the post-installation period as revenue expenditure which would have been much higher than the amount of investment allowance and depreciation allowance taken together." 13. In light of the aforementioned decisions, we are of the considered view that all the relevant facts were available on record and it could....
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.... of four years. Beyond the period of four years when an assessment is sought to be reopened, there must be a failure on the part of the assessee to fully and truly disclose all material facts necessary for assessment. In fact, the retrospective amendment would negate the inference sought to be drawn of the failure to disclose material facts. In so far as the business development expenditure of Rs. 10.79 lakhs was concerned, it was also evident from the order of assessment that the claim of the assessee was disallowed by the Assessing Officer and the amount was added back to the income. Similarly, in regard to the gratuity and superannuation as well, there was ex facie no failure on the part of the assessee to disclose the material facts. Th....