TMI Blog2003 (2) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 33,40,818 for the year ending March 31,1996. In the circumstances, there was no failure on the part of the assessee to disclose fully and truly the material facts. - - - - - Dated:- 26-2-2003 - Judge(s) : S. H. KAPADIA., J. P. DEVADHAR. JUDGMENT The judgment of the court was delivered by S.H. KAPADIA J.-This petition is filed under article 226 of the Constitution seeking to challenge the action of the Assistant Commissioner of Income-tax vide notice dated July 3,2002, under section 148 of the Income-tax Act, 1961, to reassess the petitioner's income for the assessment year 1996-97. Facts: During the financial year ending March 31,1996, corresponding to the assessment year 1996-97, the petitioner had introduced a voluntary r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im. Being aggrieved, the assessee went in appeal to the Commissioner of Income-tax (Appeals) who confirmed the order of the Assessing Officer. Being aggrieved, the assessee carried the matter in appeal to the Tribunal which took the view that notwithstanding the note in the annual report for the accounting year 1995-96, the assessee was entitled to claim the entire expenditure of Rs 10,02,23,735 in the year ending March 31,1996, because there was no benefit of enduring nature accruing to the petitioner over a period of five years. In the circumstances, the Tribunal allowed the appeal of the assessee. The judgment of the Tribunal is dated January 21,2002. On July 3,2002, the Assessing Officer issued the impugned notice under section 148 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment. In the present case, we have gone through the reasons submitted in support of the notice under section 148 of the Income-tax Act. In the entire reasons, there is no allegation of income having escaped assessment by reason of the failure on the part of the assessee to disclose fully and truly all material facts. In this case, we are concerned with reopening of an assessment after four years. In the case of [PCA Laboratories Ltd. (No.2) [2001] 251 ITR 416 (Bom), one of the points urged on behalf of the Department was that even in cases of reopening after four years if a matter involved grant of excessive relief, the Depart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above dichotomy would be clearly spelt out. In the present case, reopening is sought to be done beyond four years. In the present case, the assessee had filed its annual report before the Assessing Officer indicating spread over of Rs. 10,02,23,735 over a period of 60 months. The Assessing Officer acted on that report by granting deduction to the extent of Rs. 33,40,818 for the year ending March 31,1996. In the circumstances, there was no failure on the part of the assessee to disclose fully and truly the material facts. In our view, the judgment of this court in IPCA Laboratories Ltd. (No.2) case [2001] 251 ITR 416, squarely applies to the facts of the present case. ORDER In the circumstances, rule is made absolute in terms of praye ..... X X X X Extracts X X X X X X X X Extracts X X X X
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