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2016 (5) TMI 1392 - HC - Income TaxReopening of assessment - allowance of claim under Section 35AB - Held that:- Provisions of Section 147 of the Income Tax Act, 1961 can be invoked when an assessee is guilty of not disclosing fully and truly all materials facts necessary for its assessment for that assessment year. In the facts of the case the allegation is that the petitioner had claimed deductions in excess of the amount that it is entitled to for the relevant year. The impugned order dated May 22, 2001 alleges that the petitioner is guilty of failing to disclosure fully and truly all relevant facts for the allowance of claim under Section 35AB of the Income Tax Act,1956 and, therefore, income assessable to tax had escaped assessment. The petitioner had entered into an agreement with a foreign supplier for the purpose of acquiring technical knowhow. This agreement was disclosed to the Assessing Officer. The petitioner had sought permission from the Assessing Officer to remit the technical knowhow fees to the foreign supplier. This fact would appear from the exchange of correspondence between the petitioner and the assessment officer dated June 22, 1993, December 13, 1996 and December 19, 1996. In fact, the Assessing Officer had granted permission by writing dated December 19, 1996 to make the remittance. The petitioner has also disclosed its audited balance-sheet as also the quantum of remittance made and the manner calculated and arriving at the quantum of deductions claimed by the petitioner for the relevant assessment year. The assessment year was assessed on scrutiny under Section 143(3) of the Income Tax Act, 1961. The Assessing Officer was silent on account of the deductions claimed. He had allowed the amount of deductions claimed on such head in the order of assessment under Section 143[3] of the Income Tax Act, 1956. The petitioner is not guilty of disclosing fully and truly all materials facts necessary for its assessment for the relevant assessment year. Therefore applying the ratio laid down in Gemini Leather Stores (1975 (5) TMI 1 - SUPREME Court) and Ganesh Housing Corporation Ltd (2012 (3) TMI 211 - GUJARAT HIGH COURT) even if the assessment had escaped the notice of Assessing Officer, the provisions of Section 147 of the Income Tax Act, 1961 cannot be invoked to address such issue.
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