TMI Blog2008 (7) TMI 1010X X X X Extracts X X X X X X X X Extracts X X X X ..... lose fully and truly all material facts necessary for proper assessment ? 2. Whether the non-disclosure of material facts viz., norms of National Housing Bank based on which the assessee substantiated certain provisions would amount to full and true disclosure ? 2. The brief facts are as follows : The assessee is engaged in the business of housing finance. The relevant assessment year is 1996-1997 and the corresponding accounting year ended on 31st March, 1996. The assessee has filed the return of income on 28th Nov., 1996 admitting the total income of ₹ 1,96,31,710. The assessment was made on 27th Oct., 1998 under s. 143(3) of the IT Act. Subsequently, the assessment was completed under s. 143(3) r/w s. 147 of the IT Act on 29th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sdiction to initiate proceeding under s. 147 of the IT Act. Therefore, the order passed by the Tribunal is not in accordance with law and the same should be set aside. Heard the learned counsel appearing for the Revenue. There is no dispute that the appellant has filed an elaborate note on 27th Oct., 1998 on interest income on NPAs before the AO as to why the same is not declared. Based on the prudential norms, such income was not disclosed and the said fact was informed to the Department and National Housing Bank Act, 1987 was also enclosed with the note. Further, the assessee filed a copy of the board resolution along with the return of income with regard to writing off the bad debts in the account of M/s Fiesta Properties. So, all the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant states that it is added and declared as income on its own in the computation statement. Thus, it is the plea of the appellant that there is no failure on the part of the assessee to disclose any fact at any stage. It is true that the appellant has disclosed the above matter fully and truly before the AO in the earlier proceedings. The records show that already s. 143(3) assessment was done on 27th Oct., 1998 and s. 143(3) r/w s. 147 was completed on 29th Jan., 2002. In view of these facts and the principles laid down by the Madras High Court in the case of Fenner (India) Ltd. vs. Dy. CIT (1999) 155 CTR (Mad) 165 : (2000) 241 ITR 672 (Mad). I hold that the reopening of assessment under s. 147 is not valid in law. Insofar as the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of Fenner (India) Ltd. vs. Dy. CIT (1999) 155 CTR (Mad) 165 : (2000) 241 ITR 672 (Mad), it was held that the conditions precedent for assuming jurisdiction under s. 147 did not exist. We have perused the reasonings adduced in the impugned order. In our opinion, CIT(A) took a correct view in the matter and his order calls for no interference on this count. Accordingly, we uphold the same. Both the authorities have given concurrent finding that there is no failure on the part of the assessee in disclosing the facts fully and truly before the AO and also the reassessment is made only on mere change of opinion. The authorities have correctly followed the principle enunciated in the judgment of this Court in the case of Fenner (I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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