TaxTMI 
TaxTMI 
2011 (4) TMI 1557
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....proprietor of three business concerns namely, M/s Anita International, M/s Anita International (Export Division) and M/s Kathuria Steel Rolling Mills, M/s Anita International (Export Division) is exporting goods. M/s Anita International is engaged in the business of import and resale of teak wood, pharmaceuticals and other items. In M/s Anita International (Export Division), which was engaged in export business, the assessee had shown profit of Rs. 87,78,940/- on the total turnover of Rs. 8,25,00,754/-. In M/s Anita International, the assessee had shown loss of Rs. 5,76,338/- on the total sales of Rs. 19,46,93,668/- and; in M/s Kathuria Steel Rolling Mills, the assessee had declared profit of Rs. 1,23,740/- on hire charges of machinery. The....
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....d upheld the reopening. 6. Against this order the assessee is in appeal before us. 7. We have heard the rival contentions in light of the material produced and precedent relied upon. Ld. counsel of the assessee submitted that the assessment was done after the 4 years of the completion of the assessment year. He claimed that under such circumstances, proviso to section 147 is applicable as there was no failure on the part of the assessee to disclose all the relevant materials. Ld. counsel of the assessee argued that it was only change of opinion, hence, the reopening is not sustainable. 7.1 Ld. Departmental Representative on the other hand relied upon the orders of the authorities below. 8. We have carefully considered the submis....
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.... has escaped assessment by reasons of failure on the part of the assessee to make a return or to disclose fully and truly all material facts necessary for that assessment year. We find that assessee has disclosed all the relevant materials. 10. The reasons recorded for reassessment contains facts and figures which were taken from assessee's account submitted in the original assessment. The reasons for reopening in this case reads as under:- "The assessee filed return of income for the AY 2000-01 declaring an income of Rs. 25,77,060/-. Assessment in the case was completed u/s 143(3) on 31.3.2003 at an income of Rs. 14,28,050/-. While going through the assessment records, it is noticed that the assessee carried out business under ....
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....er, the deduction u/s 8OHHC works out to NIL as against claim deduction made by the assessee and deduction of Rs. 83,26,348/- allowed while completing the assessment. In view of these facts, I have reasons to believe that income of the assessee by way of excess deduction of Rs. 83,26,348/- allowed to the assessee u/s 80HHC, has escaped assessment to that extent for the A.Y. 2000-01. It is, therefore, necessary to take action u/s 147/148 in this case in the said assessment year." 10.1 A reading of the above makes it amply clear that no fresh material has been relied upon in this case for reopening. The reopening is based upon the materials disclosed by the assessee at the time of the original return. The reasons recorded also do ....
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.... "Action under section 147 of the Income Tax Act, 1961, can be taken after the expiry of four years from the end of the relevant assessment year only if any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee (a) to make a return under section 139 or in response to a notice under sub-section (1) of section 142 or section 148, or (ii) to disclose fully and truly all material facts necessary for his assessment, for that assessment year. The proviso to section 147 carved out an exception from the main provisions of section 147. If a case were to fall within the proviso, whether or not it was covered under the main provisions of section 147 would not be material. On....