TMI Blog2012 (10) TMI 1010X X X X Extracts X X X X X X X X Extracts X X X X ..... R.V. EASWAR , JJ. For The Appellant : Ms. Rashmi Chopra For The Respondent : Sh. C.S. Aggarwal , Prakash Kumar JUDGMENT : 1. The Revenue claims to be aggrieved by the order of the Income Tax Appellate Tribunal (ITAT) dated 26.02.2010 in ITA 4622/Del/2009 whereby it set-aside the reassessment proceedings. The question of law sought to be urged is whether the Tribunal fell into error while holding that the jurisdiction under Section 147 to issue reassessment notice and complete the same, was not justified under the circumstances of the case. 2. The brief facts are that the assessee filed its return originally for the year 2001-02 on 29.10.2001, declaring a loss of approximately ₹ 11,000/-. The assessment was c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Company, is certainly believing to be more than ₹ 1 lakhs because as per the DIT (Inv) Report, the amount of entries given runs into several crores of Rupees during the F.Y. 2000-01 relevant to Assessment Year 2001-02. In view of the above credible information received from the DIT (Inv.), I have reasons to believe that the income of my assessee who stands as a beneficiary from the entry provider, which is chargeable to tax has escaped assessment per the provisions of Section 147(a), (b) and (c) of the Income Tax Act, 1961. I am, therefore, satisfied that the said income on accommodation entries as mentioned above has escaped assessment and accordingly after recording the above said reasons as laid down under the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been reopened upto 31.03.2006 under the main provisions of Section 147. However, for reopening of the assessment beyond the period of four years, the proviso to Section 147 is pressed into operation according to which there should be failure on the part of the assessee to disclose all material facts necessary for his assessment. In the instant case, as pointed out by Ld. Counsel for the assessee that the Assessing Officer had called for the information vide his letter dated 20.12.2002 including the share capital introduced by the assessee. The assessee has given reply vide his letter dated 16.01.2003. Therefore, the entire information was available with the Assessing Officer when original assessment was made on 19.03.2004. The asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any recording of reasons that there was failure on the part of the assessee to disclose fully and necessary facts for his assessment, the assumption of jurisdiction is bad in law. Moreover, the Assessing Officer has recorded reasons without giving any ITA 266/2011 Page 5 amount of income escaped. The Assessing Officer has assumed that income by way of commission must have exceeded ₹ 1 lac which has not been disclosed. The reasons recorded are vague. Moreover, the Assessing Officer has also stated in the reasons recorded that commission income has escaped assessment within the provisions of Section 147(a), (b) and (c) of the Act. With effect from 01.04.1989, there is no provision in the Income Tax Act as in Section 147(a) or 147(b). H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment. Accordingly, the assessment made by the Assessing Officer is annulled. 6. This Court notices from the extract of the reasons to believe reproduced in the earlier part of the order that the AO adverted to a list, on the basis of which he was of the opinion that there was no full and true disclosure of all sources of income by the assessee. There are no details of that list. Even the list is not part of the assessment record which this Court had the benefit of considering. More shockingly, the assessment file did not even contain the forwarding letter, much less mention of the date of that list or the date of that letter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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