2012 (9) TMI 396

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... his part to disclose fully and truly all material facts for such assessment, reopening beyond the period of four years from the end of the relevant assessment year is not permissible. The assessee also contends that the reasons recorded by the Assessing Officer are not sufficient to permit reopening. It is the contention of the petitioner that the reasons recorded do not form sufficient basis to enable the Assessing Officer to hold a belief that income chargeable to tax has escaped assessment. Thus, the petitioner seeks to challenge the reopening of assessment on twin grounds of the reopening being beyond the period of four years without any failure on his part to truly and fully disclose all material facts and that there was no basis for .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ed fund for making investments for purchase of shares of Mastek Ltd. When the issue was presented before the Division Bench, the learned Members comprising the Bench had a difference of opinion. Such petitions were, therefore, referred to a third Member for his opinion. The third Member by his order dated March 16, 2012, concurred with the ultimate conclusion recorded by one of the two Members to the effect that the petitions are required to be allowed. This was primarily on the ground that there was no failure on the part of the assessee to disclose truly and fully all material facts necessary for assessment. In that view of the matter, considering the proviso to section 147 of the Act, the court held that reopening was not permissible. Re .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the assessee, in the company in question, it was well within his powers to ask for such material during the assessment. However, the primary onus to provide such details even if not disclosed cannot be shifted on the assessee . . .   Such conclusion would not be fatal to the petitioners, when I hold that there was no failure on the part of the assessee to disclose fully and truly all material facts, necessary for assessment. The notices for reopening the assessments beyond a period of four years, from the end of the relevant assessment years, must fail on that ground alone.   In the result, both the petitions are allowed. The impugned notices are quashed. Rule, in each petition, is made absolute."   6. In the result, with .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X