TMI Blog2017 (11) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... ge of opinion as the respondent has miserably failed to point out as to what is the reason to believe that any income chargeable to tax has escaped assessment. Thus it is a case where on suspicion the impugned reopening proceedings have been initiated. At the relevant point of time, the decision of the Hon'ble Division Bench Supreme Court in case of GKN DRIVE SHAFTES (2002 (11) TMI 7 - SUPREME Court ) was not rendered by the Hon'ble Supreme Court and therefore, the petitioner did not seek for furnishing the reason for reopening which resulted in passing of the impugned assessment order. It is only thereafter, the petitioner sought for the reasons and the present writ petition has been filed. Accordingly, the writ petition is allowed and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge is by contending that mere escapement of income is insufficient to justify initiation of action under Section 147 of the Act, after expiry of four years from the end of the assessment year and unless such escapement was by reason of the failure on the part of the assessee to file a return referred to in the proviso or to truly and fully disclose the material facts necessary for assessment and unless the conditions in the proviso to Section 147 of the Act is satisfied, the assessing officer does not acquire jurisdiction to initiate proceedings under Section 147 of the Act, after expiry of four years from the end of the assessment year. Further, it is submitted that the impugned proceedings is a clear case of change of opinion and responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the assessment vide order dated 12.03.1999, has considered the same and arrived at permissibly deduction for unit one profit. Therefore, unless and untill the respondent was able to establish that such claim for direction is the reason of the failure on the part of the assessee to truly and fully disclose material facts, the question of reopening the assessment would not arise. Both in the counter affidavit as well as in the reasons of reopening dated 07.06.2004 there is no allegation that the petitioner has failed to truly and fully disclose material facts necessary for the assessment. In the Fenner (India) Ltd., Deputy Commissioner of Income Tax, the Court considered as to when the extended period of limitation for reopening assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ....unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee.... Mere escape of income is insufficient to justify the initiation of action after the expiry of four years from the end of the assessment year. Such escapement must be by reason of the failure on the part of the assessee either to file a return referred to in the proviso or to truly and fully disclose the material facts necessary for the assessment. Whenever a notice is issued by the Assessing Officer beyond a period of four years from the end of the relevant assessment year, such notice being issued without recording the reasons for his belief that income escaped assessment, it cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer's reasonable belief that there was such failure on the part of the assessee would be indicative of a failure on the part of the Assessing Officer to apply his mind to material facts, and on that ground also the notice issued would be vitiated. The reasons actually recorded and as set out by the officer in the counter affidavit are such that even after close scrutiny they do not establish even prima facie a failure on the part of the c to fully and truly disclose the material facts for the assessment. 7. The above referred decision applies with full force to the case on hand and going by the records placed before this Court, it is evidently clear that there is no allegation against the petitioner to make full and tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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