TMI Blog2011 (9) TMI 800X X X X Extracts X X X X X X X X Extracts X X X X ..... discharged its responsibility of furnishing full disclosure of facts - Assessing Authority has not properly applied his mind towards the statutory provisions and has not taken into consideration that the original assessment passed under Section 143(3) which was also reopened once and adjustment was made, It is for the second time, he was raising all these objections - Appeals are dismissed - ITA No. 406 of 2007 C/W ITA No. 407 of 2007 - - - Dated:- 19-9-2011 - N. Kumar, Ravi Malimath, JJ. K.V. Aravind and Sri M.V. Seshachala, Advs., for the Appellant K.P. Kumar, Sr. Adv. King and Partridge, Advs., for the Respondent JUDGEMENT These two appeals are preferred by the revenue challenging the order passed by the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Tribunal. The Tribunal held that the proviso to Section 147 of the Act imposes restriction for reopening of an assessment, which was completed under Section 143(3) of the Act after the expiry of four years unless the income chargeable to tax has escaped assessment by reason of failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment. The assessee in his statement of income specifically stated that the interest income was treated as exemption under Section 10(A) of the Act. No fact or any material was withheld or suppressed by the assessee at the time of filing the return of income. The assessment was sought to be reopened on the ground that interest income cannot be said to be pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and truly disclose the material facts" as required under law. The said note reads as under:- "of the total interest of Rs.25,90,214/-, Rs.9,62,770/- is earned by the STP unit which is eligible for exemption under Section 10A of the Act. Hence, interest income of Rs. 16,27,444/- has been considered taxable." 6. From the note, it is clear that the assessee had a total interest of Rs.25,90,214/- which is liable for tax. Out of the said amount, a sum of Rs.9,62,770/- is earned by STP unit. The STP unit was eligible for exemption under Section 10A of the Act. The case of the assessee is that even the interest amount earned by STP is eligible for exemption under Section 10A. Therefore, that portion of the interest amount was not offered f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Officer. The reasons recorded should be self-explanatory and should not keep the assessee guessing for the reasons. Reasons provide the link between conclusion and evidence. The order passed by the Assessing Authority did not state anywhere that there was a failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment of that year. All that has been stated in the order is that the assessee has appended the note and at no point of time, the assessee has disclosed as to the nexus between the amount of Rs.10,06,617/- and the 10A unit. The disclosure has to be full and true. Both the criteria have to be met. In the assessee's case, by failing to bring out the nexus between the 10A unit and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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