Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2005 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2005 (11) TMI 173 - AT - Income TaxCash credits - Income Escaping Assessment - Validity of notice issued u/s 148 - time barred - Whether, the re-assessment proceedings intimated by the Assessing Officer and confirmed by the CIT(A) are valid? - HELD THAT:- In the present appeals, we are concerned with the unamended provisions. The relevant provision of clause (a) of section 147 empowers the Assessing Officer to assess or reassess any income, where he has reason to believe that by reason of the omission or failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment, any income chargeable to tax has escaped assessment. It shows that proceeding u/s 147(a) read with section 148 can be initiated if two conditions are specified, namely, (i) the Assessing Officer must have reason to believe that income chargeable to tax has escaped assessment and (ii) he must have reason to believe that such income has escaped assessment by reason of the omission or failure on the part of the assessee to disclose fully and truly material facts necessary for his assessment for that year or to make a return u/s 139 for the assessment year to the Assessing Officer. Both the conditions should be cumulatively satisfied to confer jurisdiction to the Assessing Officer to initiate the proceedings. So long as the disclosure made by the assessee is full and true of all the material facts, the intention of the assessee cannot be questioned. If however, the subsequent events, after completion of the assessment, belie the claim of the assessee made at the assessment stage, it cannot be said that the disclosure earlier made was full and true. On consideration of the facts, we are of the view that Assessing Officer did not validly assumed jurisdiction in initiating proceedings u/s 147 of the Income-tax Act. Considering the discussion and relying on earlier order of ITAT Amritsar Special Bench in case of Assam Tea Co.[2004 (1) TMI 296 - ITAT AMRITSAR], we are of the view that cases of assessees are squarely covered by order of Special Bench in case of Assam Tea Co. therefore, initiation of the reassessment proceedings are not in accordance with law. We, accordingly, quash the same. We, therefore, answer the first question in negative i.e., in favour of the assessee and against the Revenue. Since question No. 1 is decided in favour of the assessee, therefore, there is no need to decide question No. 2 on merits as it is of academic interest only. No other point is argued or pressed nor there is any need to go in those points in view of our above finding. As a result, we cancel the orders of the authorities below and allow all the appeals of the assessee.
|