TMI Blog2014 (10) TMI 226X X X X Extracts X X X X X X X X Extracts X X X X ..... part of the petitioner to disclose truly and fully material facts necessary for assessment - the reopening of assessments u/s 148 of the Act beyond the period of four years from the end of the relevant AY has to specify the failure on the part of the assessee to disclose fully and fully all material facts necessary for assessment - Revenue has to justify the notices only on the basis of the reasons recorded at the time of issuing the notices - The reasons as recorded and furnished to the petitioner, do not disclose even remotely any failure on the part of the assessee to disclose truly and fully material facts necessary for assessment during the relevant AYs 1998-1999 and 1999- 2000 – the notice is without jurisdiction cannot be sustained – ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 's income at ₹ 47.11 lakhs.. 4. On 23 March 2005, the impugned notice seeking to reopen the Assessment Year for the year 1998-1999 was issued. The reasons in support of the impugned notice as furnished to the petitioner read as under : 11. Reasons for the belief that income has escaped assessment: While completing the assessment for A.Y.2001-02, it was held that the advances made to the various concerns for promoting and nurturing, with the end intention of acquiring these concerns was not the part of business activities. Therefore, it was held that these advances were of capital nature. 2. During the year under consideration the assessee has claimed that the advances made for promoting and nurturing is a business and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 30 March 2001 was a subject matter of an appeal proceedings under the Act. Therefore, in view of the doctrine of merger, the original order of assessment sought to be reopened has merged into the Appellate order. Therefore, the impugned notices are not sustainable. 7. As we found substance in the submissions made on the first issue, namely, the impugned notices having been issued beyond a period of four years from the end of relevant assessment year, the reasons in support do not indicate any failure on the part of the petitioner to submit fully and truly all material facts necessary for assessment, we stopped Mr. Andhyarujina from making his submissions in support of the other issues raised by him. We informed Mr.Andhyarujina tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material facts necessary for assessment. The reliance by Mr.Pinto upon the order dated 20 March 2006 rejecting the petitioner's objections and the affidavit in reply dated 24 July 2006 to contend that there has been a failure on the part of the petitioner to disclose fully and truly all material facts necessary for assessment is not permissible. This Court has time and again held that the reopening of assessments under Section 148 of the Act beyond the period of four years from the end of the relevant assessment year has to specify the failure on the part of the petitioner to disclose fully and fully all material facts necessary for assessment. It is only on satisfaction of the above jurisdictional requirement that a notice under Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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