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2014 (11) TMI 564 - HC - Income TaxReopening of assessment u/s 147 r.w. section 148 – Indo-UK treaty - Full and true disclosure of facts made or not - Held that:- Income of the partnership having escaped assessment which escapement was noticed subsequently as indicated in the reasons supplied and as the partnership assessee had failed to disclose fully and truly all material facts necessary for its assessment for the earlier AYs from 1997-98 onwards, the assessment u/s 143(3) made earlier of the petitioner no.1 could not be relied upon as an assessment made of the relevant year relating to the partnership – the AO has reasons to believe that income chargeable to tax of the partnership for AYs prior to the return filed by it for AY 2002-03 as ‘New Case-1st Year’ had escaped assessment cannot be said to be perverse - the notice was not time barred under the first proviso to section 147 of the Act and thereby saved from the time bar prescribed under section 149 - Whether or not the same income stood already disclosed and exempted from tax as income assessed of the petitioner no.1 as assessee being a partner of the partnership or such income of the partnership had escaped assessment would be a question to be gone into and answered in the assessment sought to be made pursuant to the issuance of the notice - this court cannot find the partnership had made full disclosure. Scope of definition u/s 2(31) - relief under Indo-UK treaty - Held that:- The Revenue in treating the partnership as an assessee and seeking to assess income of it which had escaped assessment is for the purpose of charging tax on the income of the partnership, treating it as a person liable to be charged with the levy of income tax under the section - In doing so the revenue has to treat the partnership as a person within the definition provided of person u/s 2(31)(iv) of the Act – thus, the notice for reopening is set aside – Decided in favour of assessee.
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