9911796707
TMI Blog2004 (3) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... e. On the assessee's request, the reasons recorded for reopening the assessment were communicated to him vide communication dated December 5, 2003. On the basis of the said reasons, the contention was raised before the Assessing Officer that there being no satisfaction about escapement of assessment which is attributed to failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for the assessment year 1996-97, the reopening cannot be made after four years from the end of the relevant assessment year which ends on March 31, 2001. Section 147 of the Income-tax Act, 1961, requires that if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under subsection (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment for that assessment year." Apparently, if the escapement of income is believed by the Assessing Officer to have escaped assessment not attributable to any failure on the part of the assessee in filing a return under section 139 or 148 or to failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment, the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o claim the extended period of limitation under section 149(1)(b) which can be invoked only in cases falling outside the proviso to section 147. If the facts are correctly disclosed and a claim has been laid to deduction or exemption, which on the Assessing Officer's view may not be sustainable in law, that does not make the assessee guilty of failure to disclose truly and correctly all material facts. It is trite to say that the assessee's duty ends with placing all material facts necessary for assessment before the Assessing Officer. Once that duty is performed, it is not necessary for the assessee to instruct the Assessing Officer to draw inferences and assess the income. It is for the Assessing Officer to correctly construe that materia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iency or adequacy of material, on the basis of which, belief has been found but his case is on the basis of the reasons recorded by the Assessing Officer himself, he had no jurisdiction to initiate proceedings on the date on which he issued notices which were clearly beyond four years from the end of the relevant assessment year, which, in the present case, comes to end on March 31, 2001. It is apparent from the reasons that the Assessing Officer did not hold any belief that escapement of income chargeable to tax from the assessee was on account of any failure on the part of the assessee to disclose truly and fully all material facts necessary for his assessment for the assessment year 1996-97. Thus, it was clearly a case falling within the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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