2011 (2) TMI 738 - GUJARAT HIGH COURT

Reopening - Deduction u/s 80-IB - whether there was any failure on the part of the petitioner-assessee to disclose fully and truly all material facts necessary for its assessment for the assessment year under consideration - it appears to be the case of the Assessing Officer that upon verification of the details he has noticed that the assessee is merely a works contractor and has not undertaken any developing and building housing project approved by the local authority and as such the claim made by the assessee for deduction under section 80-IB(10) of the Act is not in accordance with law - All that is stated is that due to illegitimate claim of deduction of Rs. 13,45,211 made and allowed to the assessee under section 80-IB(10) of the Act, the Assessing Officer has reason to believe that income chargeable to tax has escaped assessment within the meaning of section 147 of the Act

There can be no doubt that the duty of disclosing all the primary facts relevant to the decision of the question before the assessing authority lies on the assessee - Merely because of the fact that the assessee had asserted that it is a developer in the returns filed by him, it cannot be said that there is any failure on the part of the petitioner to disclose fully and truly all material facts - In the circumstances, in the absence of any failure on the part of the petitioner to disclose fully and truly all material facts necessary for its assessment for the assessment year under consideration, the assumption of jurisdiction under section 147 of the Act after the expiry of four years from the end of the relevant assessment year is illegal and invalid - Decided in favor of the assessee