2024 (2) TMI 1557

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.... 2009 wherein claim of additional TDS of Rs. 19,86,957/- was made. Case was selected for scrutiny and assessment under Section 143(3) of the Income Tax Act, 1961 ("the Act") was made on 28th December, 2010 determining total income of Rs. 240,48,78,390/-. 2. Subsequently, Petitioner received a notice dated 11th November 2013 under Section 148 of the Act stating that there was reason to believe that Petitioner's income in respect of which it was assessable to tax for AY 2007-08, has escaped assessment. By a communication dated 16th December 2013, Petitioner also received reasons recorded for reopening of the assessment. The same reads as under: "The return for AY 2007-2008 was filed on 30-10-2007 declaring total income of Rs. 233,67,08,748....

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.... Rs. 269.99) to the ALP resulting in overpayment to its AE Rs.  1,72,00,800/- (Rs. 215.01 x 80,000 kgs.)   Primafacie income escaping assessment Rs. 12,23,71,300/- (i.e.Rs.1,72,00,800/-+ Rs.  10,51,70,500) In the light of the new material that has been brought on record, there is reason to believe that income chargeable to income tax has escaped assessment. Also, this escapement of income has occurred due to failure on the part of the assessee company to disclose fully and truly facts that are material to the computation of arms length price. Since four years have elapsed from end of the relevant assessment year and the regular assessment had been made u/sec. 143(3) of the IT Act, 1961, the kind approval of the CIT-8, Mu....

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....ed of not disclosing facts of which he was not aware of. Mr. Mistry also submitted, assessee is under an obligation to disclose only all basic facts and cannot be expected to draw any inference or to disclose any inference to be made from these basic facts. 5. It was also submitted, during the transfer pricing proceedings, Petitioner was called upon vide notice dated 19th November 2009 to submit copy of agreements entered into with associated enterprise ("AE") in respect of the international transactions, copy of annual report/audited accounts, computation of income, copy of acknowledgment of return filed for AY 2007-08 and if Transactional Net Margin Method ("TNMM") is used for determining the ALP of the international transactions, the wo....

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..... 7. As held by the Apex Court in Calcutta Discount Company Limited v. ITO (1961) 41 ITR 191 (SC), the duty of an assessee does not extend beyond the full and truthful disclosure of all primary facts. Once all the primary facts are before the Assessing Authority, it requires no further assistance by way of disclosure. It is for the AO to decide what inferences of facts can reasonably be drawn and what legal inferences have ultimately to be drawn. The duty of assessee, the Court held, is to disclose fully and truly all primary relevant facts, it does not extend beyond that. 8. In N.D. Bhatt Inspecting ACIT & Anr. v. I.B.M. World Trade Corporation (1993 SCC Online (Bom) 243), the Division Bench of this Court relying on Indian Oil Corporatio....