TMI Blog2016 (5) TMI 1392X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act,1956 and, therefore, income assessable to tax had escaped assessment. The petitioner had entered into an agreement with a foreign supplier for the purpose of acquiring technical knowhow. This agreement was disclosed to the Assessing Officer. The petitioner had sought permission from the Assessing Officer to remit the technical knowhow fees to the foreign supplier. This fact would appear from the exchange of correspondence between the petitioner and the assessment officer dated June 22, 1993, December 13, 1996 and December 19, 1996. In fact, the Assessing Officer had granted permission by writing dated December 19, 1996 to make the remittance. The petitioner has also disclosed its audited balance-sheet as also the quantum o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t being dated May 31, 2001. Learned Senior Advocate for the petitioner has submitted that the concerned assessment year is 1994-1995. The assessee was issued a notice for scrutiny for such assessment year on March 4, 1997. The petitioner had replied thereto by writing dated March 11, 1997. An order under Section 143[3] in respect of such assessment year was passed on March 31, 1997. Being aggrieved by certain portions of such assessment order, the petitioner had preferred an appeal therefrom. So far as the impugned notice is concerned, it relates to assessment of claim on account of acquisition of technical knowhow. Learned Senior Advocate for the petitioner has submitted that the petitioner had entered into an agreement with a foreig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d order, as also the notice, should be quashed. Learned Advocate for the Department has submitted that, the Assessing Officer was correct in issuing the impugned order. The reasons necessitating the Assessing Officer to pass the impugned order is as stated in the impugned order itself. He, however, has not been equipped necessary instructions by the Department to make any further submission. I have considered the rival contentions of the parties and the materials made available on record. The petitioner has impugned a notice under Section 148 of the Income Tax Act, 1961 dated March 31, 2001 relating to an assessment year 1994-1995 in the present writ petition. The reasons for issuance of such notice had been disclosed by the Depart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a few. In the case before us the assessee did not disclose the transactions evidenced by the drafts which the Income Tax Officer discovered. After this discovery the Income Tax Officer had in his possession all the primary facts, and it was for him to make necessary enquiries and draw proper inference as to whether the amounts invested in the purchase of the drafts could be treated as part of the total income of the assessee during the rerlevant year. This the Income Tax Officer did not do. It was plainly a case of oversight, and it cannot be said that the income chargeable to tax for the relevant assessment year had escaped assessment by reason of the omission or failure on the part of the assessee to disclose fully and truly all material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated December 19, 1996 to make the remittance. The petitioner has also disclosed its audited balance-sheet as also the quantum of remittance made and the manner calculated and arriving at the quantum of deductions claimed by the petitioner for the relevant assessment year. The assessment year was assessed on scrutiny under Section 143(3) of the Income Tax Act, 1961. The Assessing Officer was silent on account of the deductions claimed. He had allowed the amount of deductions claimed on such head in the order of assessment under Section 143[3} of the Income Tax Act, 1956. The petitioner is not guilty of disclosing fully and truly all materials facts necessary for its assessment for the relevant assessment year. Therefore applying the ra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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