1976 (3) TMI 45

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.... dated the March 30, 1970, in respect of the assessment year 1961-62 is the subject-matter of challenge. The assessee is a registered partnership firm. It was contended that there was no material for reopening. In answer to the rule nisi in the affidavit-in-opposition it was stated on behalf of the respondent that for the assessment year 1961-62 the firm had filed return of income on February 22, ....

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....in the names of various bogus parties. Thereafter, proceedings were initiated against the petitioner-firm. It was stated that from the disclosure petitions it would appear that fictitious and false entries were made in the books of the assessee-firm. The reasons as recorded under clause (a) of section 147 of the Income-tax Act, 1961, for obtaining sanction were produced before me and the said reas....

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....e assessment year 1961-62 which escaped assessment. I have, therefore, reason to believe that by reason of omission or failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for the assessment year 1961-62, income chargeable to tax has escaped assessment." It appears that the reasons were, firstly, that there were false entries in the boo....

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.... belief that income of the partnership firm had escaped assessment due to failure or omission on the part of the assessee. In this connection, reliance may be placed on the observations of the Division Bench of the Bombay High Court in the case of Narayandas Kedarnath v. Commissioner of Income-tax. It further appears that in obtaining sanction from the Commissioner it was represented that the asse....