1982 (8) TMI 126

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..... y a common order. The only question for consideration in these appeals is whether the AAC was right in holding that reassessment proceedings under s. 147(a) had been rightly taken up by the ITO. The facts are that original assessment had been made on the assessee on 28th Feb., 1975 for the asst. yr. 1972-73. Only property income at Rs. 2,000 was assessed at that stage. In the earlier year, the ass .....

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..... ending business and the details of the debtors were not given by the assessee. These two facts being the primary facts, necessary for making the assessments in the opinion of the ITO and the assessee having purportedly failed to disclose such primary facts, the ITO initiated the reassessment proceedings and he estimated the income from money lending business at Rs. 30,000 for the asst. yr. 1972-73 .....

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..... e assessee, it was simply stated that no interest income had been received during the years under appeal. It shows that material fact was already within the knowledge of the ITO but he having been satisfied with the affidavit of the assessee did not make any further investigation and he did not choose to assess income from money lending business even on estimate basis as was done in the past years .....

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..... n invested in the money lending business and the names of the debtors. Even, if it is assumed that these are the material facts within the meaning of cl. (a) of s. 147, there is no material on record to show that the ITO had reason to believe that any income from money lending business had escaped assessment on account of non-disclosure of the facts, namely, the capital employed in the money lendi .....

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..... re disclosed these two facts, it cannot be presumed that there was interest income during the years under appeal. The assessee categorically stated though certain transactions had been carried out during the year under appeal, but no interest income was received. There is nothing to show to the contrary. For the reason, we hold that the ITO exceeded in his jurisdiction in having issued notices und .....

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