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2023 (7) TMI 696
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....itioner had filed return of income on 10th November 2006 declaring total income at "Nil". Petitioner also had filed, alongwith return, note to computation of income. In the original return of income, petitioner computed the total income at "Nil" after claiming set off of brought forward unabsorbed depreciation against the long term capital gains and business income. The total income of petitioner was computed as follows : Particulars Rs. Business Income 87,71,91,932 Long term capital gains 116,23,53,853 Short term capital gains 1,46,56,987 Less Set off of unabsorbed depreciation AY 1998-99 18,64,85,685 AY 1999-00 54,33,63,761 ....
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....easons for re-opening read as under : Reasons for initiating proceedings u/s 147 of the IT Act During the year under consideration, the assessee is having income from business and short term capital gains. In this case, assessment u/s 143 (3) of the IT Act was completed on 16.11.2009, assessing the total income at Rs. Nil after adjustment of brought forward unabsorbed depreciation of Rs .93,04,19,347/- against business income and adjustment of Rs. 117,70,10,840/- against income from capital gains. The income was assessed at Rs. 189,01,74,827/- u/s 115JB of the IT Act. The income from capital gains was adjusted against brought forward unabsorbed depreciation for AYs 2000-01 to 2003-04. It has been judicially held by the Hon....
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.... notice issued would be without jurisdiction. 7. Mr. Sanghavi submitted that there is nothing in the reasons to believe, as quoted above, to indicate that there was any failure to disclose. Mr. Sanghavi also submitted that even in the affidavit in reply opposing the petition, infact, there is an admission that petitioner had disclosed unabsorbed depreciation for Assessment Year 2000-2001 and 2001-2002. Mr. Sanghavi states that even assuming for the sake of argument that respondent no.2 is correct in stating that the unabsorbed depreciation could not have been adjusted against income from capital gains still that would not amount to conferring jurisdiction on respondent no. 2 because there was no failure to truly and fully disclose. Moreo....
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....ital gains for A/y 2006 2007. The claim of the Petitioner of set-off of unabsorbed depreciation for the A/Y 2000-2001 and A/y 2001-2002 against income from capital gains for A/y 2006-2007 is a false claim made in the Return of Income and would amount to failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment for A/y 2006- 2007. 10. This cannot take respondents' case any further because more than four years have expired since the end of the relevant assessment year and the only basis on which it can be re-opened was if there was failure to disclose fully and truly all material facts. There is not even such an allegation in the reasons to believe. Moreover, the Assessing Officer in th....
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....as to whether the amounts invested in the purchase of the drafts could be treated as part of the total income of the assessee during the relevant year. This the Income-tax officer did not do. It was plainly a case of oversight, and it cannot be said that the income chargeable to tax for the relevant assessment year had escaped assessment by reason of the omission or failure on the part of the assessee to disclose fully and truly all material facts. The Income tax officer had all the material facts before him when he made the original assessment. He cannot now take recourse to Section 147 (a) to remedy the error resulting from his own oversight." 11. Whether it is a disclosure or not within the meaning of Section 147 of the Act w....