TaxTMI 
TaxTMI 
2010 (1) TMI 29
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.... 2. The issue before the Tribunal was as to whether certain prior period expenses amounting to Rs75,96,534/- had been rightly disallowed by the Assessing Officer and confirmed by the Commissioner of Income Tax (Appeals) in reassessment proceedings under Sections 147/148 of the Act. 3. It is an admitted position that the reopening was subsequent to the four-year period stipulated in the proviso to Section 147 and, consequently, the same could only be initiated if any income chargeable to tax had escaped assessment by reason of the failure on the part of the assessee to make a return under Section 139 or in response to a notice under Section 142(1) or Section 148 or "to disclose fully and truly all material facts necessary for his asses....
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....r was applying his mind to the question of prior period expenses. It is only after consideration of these materials, information and answers which were provided by the assessee that the Assessing Officer completed the assessment under Section 143(3) on 29th February, 2000. 7. The Tribunal took note of these specific facts and observed as under: "15. Further, on examination of the entire material on record it is fully established that in this case the application of the mind on the part of the Assessing Officer relating to issue of prior period expenses is fully revealed. The reply of the assessee dated 6.9.1999 available at page 51 indicates that in pursuance of the hearing dated 12.8.1999 in respect of the assessment proceedings cert....
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....tly the application of the mind by the Assessing Officer is fully proved and secondly, it is also proved that the assessee had furnished full details and entire relevant material. Thus it cannot be said that the assessee did not furnish details or did not disclose full and true facts relating to the issue on the basis of which the opening was made or that the Assessing Officer did not apply the mind to such particulars. On the other hand, it is fully established that there was no failure on the part of the assessee in supplying material facts." 8. We are in agreement with the aforesaid conclusion arrived at by the Tribunal and find that there has been no failure on the part of the assessee to fully and truly disclose the relevant materia....
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....tion 114 of the Indian Evidence Act indicating that judicial and official acts had been regularly performed. The Full Bench observed that if it were to be held that an order that has been passed purportedly without application of mind would itself confer jurisdiction upon the Assessing Officer to re-open the proceedings without anything further, the same would amount to giving premium to an authority exercising a quasi-judicial function to take benefit of its own wrong. The Full Bench decision also makes it clear that Section 147 of the Act does not postulate conferment of power upon the Assessing Officer to initiate reassessment proceedings upon a mere change of opinion. It is obvious that the Full Bench Decision holds the field. 11. We....
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.... for the Revenue drew our attention to Explanation 1 to Section 147, which stipulates that production before the Assessing Officer of account books or other evidence from which material evidence could, with due diligence, have been discovered by the Assessing Officer, would not „necessarily‟ amount to disclosure within the meaning of the proviso to Section 147. In this backdrop, the learned counsel for the Revenue submitted that the mere production of the audited account books etc, did not amount to disclosure and it was open to the Assessing Officer to invoke the jurisdiction under Section 147 of the Act, in case a discovery was made that income had escaped assessment. She contended that mere production of the books of account ....