TMI Blog1979 (7) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... have been consumed in meeting the house-hold expenses. The ld. ITO found that the house-hold expenses of the assessee was able to explain the expenditure of Rs. 3000 only. So, in his opinion, the remaining expenses of Rs. 7000 were not satisfactorily explained. The ld. ITO was of the view that the assessee did not disclose the entire agricultural income. He was of the view that the assessee failed to disclose the material facts, truly and correctly. So, he started proceedings under s. 147(a)/148 of the Act. The ld. ITO, after considering the contention of the assessee, and the evidence on record, held that the share income of the assessee from the joint venture was Rs. 26,052, and the same was, accordingly, added to the total income of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the ld. ITO dt. 3rd June, 1976 containing reasons for initiating proceedings under s. 147 would clearly support the ld. A/R's contention as it does not contain any material to show that any taxable income had escaped assessment on account of any omission on the part of the assessee. The language used by the ld. ITO in the order sheet dt. 3rd June, 1976 as under: "Assessee has not declared his agricultural income fully and there is omission on part of the assessee. There is escaped assessment and s. 147(a) attracts'. Issued notice under s. 148. Sd R. Prasad, . ITO" Thus, from the above facts, it is clear that the ld. ITO has not made out a case that the appellant failed to disclose fully and trul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but he did not do so clearly meant that he was satisfied with the appellant's claim. Anyway, whether he has recorded his wrong satisfaction in law or not a out matter before me and the fact is whether there was or not case of disclosure of the correct primary facts on the part of the appellant in the original assessment proceedings, which could have bearing on the issue of his agricultural income for this year. Thus, as the conditions precedent before taking action under s. 147(a) were not satisfied, the ITO had no authority under law to issue notice under s. 148 and consequently, notice issued by him on 3rd June, 1976 was ab initio invalid in law and consequently, there was no question of a valid assessment being made on the basis of such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... point out that it was not the case of the Revenue that the facts found by the ld. AAC are not correct. So, the finding of the learned AAC is quite correct, and no interference is called for. 7. The other contention of the Revenue that in the present case s. 147 (b) may be applied because the ld. ITO reopened the assessment after getting the information from the firm M/s. Jamitpura Open Sugar Factory could hardly be accepted. The ld. ITO specifically recorded the reasons before starting proceedings under s. 147(a) 148 of the Act, and in the reasons, it was stated that there was escapement of income, and the assessee failed to disclose agricultural income fully. The ITO never reopened the assessment under s. 147(b) of the Act. In the cases ..... X X X X Extracts X X X X X X X X Extracts X X X X
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