2009 (11) TMI 58

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....Chd/2008, pertaining to the assessment year 2001-02, raising the following substantial question of law:- (i) Whether on the true and correct interpretation of Section 147 Proviso the initiation and conclusion of the proceedings is sustainable without discharging the department onus for bringing on record the material going to show "disclosure not made fully and truly"? 2. The brief facts of the case are that the assessee-appellant firm is engaged in the business of manufacture and export of hosiery goods. On 20.10.2001, the assessee filed Income-tax return for the assessment year 2001-02, declaring the total income at Rs. 5,61,096/- along with the audit report under Section 44-AB of the Act. The audit report for claim of deduction under S....

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....of Income Tax (Appeals)-II, Ludhiana, vide order dated 31.3.2008, as well as by the ITAT vide its order dated 26.2.2009. 3. During the course of arguments, learned counsel for the appellant-assessee could not controvert the legal position that in view of the decision of the Supreme Court in Sterling Foods' case (supra) and the decision of this Court in Liberty India's case (supra), no deduction on account of the Duty Draw Back and the Duty Entitlement Pass Book Scheme (hereinafter referred to as `DEPB') under Section 80-IB of the Act can be allowed. It is also conceded position that the judgment of this Court in Liberty India's case (supra) has been affirmed by the Apex Court in Liberty India v. Commissioner of Income-Tax, (2009) 317 ITR 2....

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....losure was not made fully and truly. 4. After hearing learned counsel for the appellant-assessee and going through the order passed by the ITAT, we do not find any ground to interfere in this appeal, as in our opinion no substantial question of law is arising in this appeal, because a pure finding of fact has been recorded to the effect that the re-assessment proceedings have rightly been initiated after framing the opinion that some income chargeable to tax has escaped assessment. Under Section 147 of the Act, after its amendment with effect from 1.4.1989, wide power has been given to the Assessing Officer even to cover the cases where the assessee had fully disclosed the material facts. The only condition for action is that the Assessing....