TMI Blog2007 (9) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... .1975 and on the basis of which some gold ornaments, silver and cash were seized from the petitioner. It is further stated that the Superintendent of Police, Koraput vide his letter dated 25.9.1975 informed the Income Tax Officer of such seizure and sent a copy of the seizure list to him. 5. It is stated that the income Tax Officer upon receipt of such information in turn called upon the petitioner to provide certain information and also examined the petitioner under oath in his capacity as Karta of his family and completed assessment under Section 143(1) of the Act on 31.3.1979, i.e. after three and half years of getting such information from the Superintendent of Police, Koraput. Learned Counsel for the petitioner further asserts that the Income Tax Officer had accepted the accounts of the petitioner after seeking information from the petitioner with regard to the articles seized by the police as well as by examining the petitioner as 'Karta' of the H.U.F. as well. In the aforesaid facts, the learned Counsel for the petitioner submits that the order of assessment dated 31.3.1979 was passed under Section 143(1) of the Act by the I.T.A.T. after duly applying his judici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w framed in the present proceeding be answered in favour of the Assessee by holding that the initiation of the proceeding under Section 147(a) of the Act was invalid. In support of the aforesaid prayer, the learned Counsel essentially advanced the following contentions: That, the Hon'ble Tribunal without going to the question as to whether the precondition for issue of notice under Section 147(a) namely commission or failure on the part of the assessee to make a return under Section 139 of the disclose fully and truly all materials facts necessary for the assessment year even though admittedly all the information existed with the revenue as early as 25.9.1975 and the records reveals that enquiry was conducted on the same materials and the concerned officer did not consider, worthwhile to make an assessment on this materials but hold that the action of the income tax officer for initiation of the proceeding under Section 147(a) is valid. However the reassessment order is nothing but reviewing the earlier order which is not permissible under the law. Moreover the facts were well known to the department by the time of assessment was completed and therefore the question of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee to make a return under Section 139 for any assessment year to the Income Tax Officer, or to disclose fully and truly all material facts necessary for his assessment for that year, income chargeable to tax has escaped assessment for that year or.... Section 147(b) of the Income-tax Act, 1961 read as under: Not-withstanding that there has been no commission or failure as mentioned in Clause (a) on the part of the assessee, the Income-tax Officer has in consequence of information in his possession reason to believe that income chargeable to tax has escaped assessment for any assessment year.... 12. On a plain reading of the aforesaid provisions of law it would be clear that if the information provided by an Assessee is not sufficient or if there was no such information at all, then there was clearly a failure or omission on the part of the assessee to disclose fully and truly all material facts. This aspect is covered under Clause (a) of Section 147 of the Act. Sub-section (b) thereof would apply of the I.T.O. obtains any information relating to the income of the assessee. 13. Considering the aforesaid provisions of law, the Appellate Assistant Commissioner of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manner: 14. x x x x x x The I.T.O. made the original assessment under Section 143(1). He had no occasion to make investigation in detail, as he has merely accepted the return filed by the assessee. When he had taken report of the Superintendent of Police, Koraput and the seizure-list that made, still he did not make out his mind. But after completing the time barred assessment the I.T.O. applied his mind and came to the conclusion that there was an escapement of income due to the omission and failure on the part of the assessee. 15. From the above it is clear that in a reading of the aforesaid conclusion the Income Tax Appellate Tribunal also accepted the following facts: (i) The I.T.O. had received the information from the Superintendent of Police, Koraput vide his letter dated 25.9.1975. (ii) On the basis of the said report the I.T.O. called upon the assessee to provide certain explanations. (iii) The assessee was examined by the I.T.O. on oath. 16. The I.T.O. thereafter completed the assessment under Section 143(1) on 31.3.1979. Therefore, from the aforesaid fact it would be clear that right from the date of receipt the Superintendent of Police's l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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