TMI Blog2007 (12) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... . I. REBELLO J.— 1. A notice was served on the petitioners by respondent No.1 under section 148 of the Income-tax Act, 1961, hereinafter referred to as "the Act", in which it is stated that he has reason to believe that the petitioner's income chargeable to tax for the assessment year 2001-02 had escaped assessment within the meaning of section 147 of the Act. On May 1, 2003, an assessment order was passed under section 143(3) of the Act. determining the total income at Rs. 12,36,393 after allowing deduction under section 80-IB(10) of the Act. By the communication dated April 11, 2007, the petitioner's chartered accountant sought the reasons recorded for reopening the assessment. By communication dated April 12, 2007, the reasons were made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid to be disclosure of information. It is further submitted that formation of opinion by the Assessing Officer has to be considered on the touchstone whether there was reasonable belief that income had escaped assessment and for that purpose reliance is placed on the judgment of the Supreme Court in Raymond Woollen Mills Ltd. v. ITO [1999]236 ITR 34. 4. From the material on record it would be clear that prima facie to claim benefit under section 81-IB on the relevant date one of the requirements is that the size of the plot of land is a minimum of one acre. The petitioner in the declaration filed under section 80-IB(10) whilst claiming deduction had set out as under "The size of the plot of land is 4074.90 sq. yards, i.e., it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laid down by the Supreme Court in Raymond Woollen Mills Ltd., [1999] 236 ITR 34, the question is whether the Assessing Officer had prima facie reason to believe that the income had escaped assessment. We have earlier noted Explanation 2(c)(iv) of section 147. In our opinion as there was no true disclosure of the exact size of the plot when the new construction commenced it prima facie cannot be said that there were no reasons to believe. The information was in the annexures and consequently Explanation 2(c)(iv) of section 147 of the Act will apply. The various judgments relied upon on behalf of the petitioner-assessee are distinguishable inasmuch as either there was no failure to disclose the full and true relevant information a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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