TMI Blog2013 (6) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... The averment of the counsel for the Revenue that despite such cancellation of the banking licence, the petitioner lodged a false claim, even if were to be corrected, would not per se indicate that there was any failure on the part of the assessee to disclose truly and fully all material facts. As long as this requirement is satisfied, it was simply not open for the Assessing Officer to reopen the assessment beyond the period of four years from the end of relevant assessment year. In favour of assessee. - Special Civil Application No. 1043 of 2013 - - - Dated:- 7-5-2013 - Akil Kureshi And Sonia Gokani, JJ. For the Appellant : Mr B. S. Patel For the Respondent : Mr K. M. Parikh JUDGMENT Per : Akil Kureshi, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, the receipts of the assessee during the previous year relevant to assessment year 2005-06 were not on account of assessee s engagement in any business or profession. The assessee had not carried out on any business during the previous year, as per the provisions of section 28(i) of the Act and therefore, its income could not be computed under the head Profit and Gains of business or profession . Therefore, the loss incurred of Rs. 7,95,82,108/= in A.Y 2005-06 was chargeable to income tax under the head Income from other sources and not under the head Profits and Gains of business or profession . And such, the assessee was not entitled to carry forward such loss as business loss for set off the same in the subsequent A.Ys as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 7,95,82,108/= as a business loss is that the petitioner s banking license was cancelled by the Reserve Bank of India on 30th July 2003. As per the Assessing Officer, therefore, the petitioner no longer was in the business of banking. Any such loss suffered by the petitioner therefore cannot be treated as a loss arising out of the business or profession to be able to carry forward the same for setoff against future years profit. We are for the present not concerned with the validity of such a stand taken by the Assessing Officer. What we are examining is whether from the material on record, it could be stated that income chargeable to tax has escaped assessment due to failure on the part of the assessee to disclose truly and fully ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Reserve Bank of India on 30/07/2003. This fact, the Assessing Officer thus gathered from the verification of the case record and not from any other sources. This aspect gets further amplified when one peruses the draft assessment order prepared by the Assessing Officer; a copy of which is produced at R1. In such draft order also,he has recorded as under : 3. NATURE OF BUSINESS : The assessee in col. 8 (a) of the audit report in form No. 3CD has stated its business as Cooperative banking business. It is also stated in col. 24(a)(i) of the audit report in form 3CD that the banking licence is cancelled w.e.f 30/07/2013. No new deposits received during the year. Thus, there was no failure on the part of the assessee to d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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