TMI Blog2018 (2) TMI 1712X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment cannot lead to the conclusion that there has been any failure on the part of the Assessee to truly and fully disclose all material facts necessary for Assessment. The impugned order of the Tribunal correctly placed reliance upon the decision of the Supreme Court in Calcutta Discount Company Ltd (1960 (11) TMI 8 - SUPREME Court) to hold that not pointing out the inference to be drawn from facts will not amount to failure to disclose truly and fully all material facts, necessary for assessment. - Decided in favour of assessee. - Income Tax Appeal No. 802 of 2015 - - - Dated:- 29-1-2018 - M.S. SANKLECHA RIYAZ I. CHAGLA, JJ. Mr. Tejveer Singh, for the Appellant. Mr. Ruturaj Gurjar i/b. Mr. Mihir Naniwadekar, for the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment Year 2003-04. The reasons in support of the impugned notice as communicated to the Petitioners, reads as under: The assessee company is a joint venture between Kalyani Group Lemmerz Werke GMBH Germany with share holding of 75% 25% respectively. The Company was incorporated on 18/01/1996. On 30/6/1997, Hays Corporation USA, acquired Lemmerz Werke GMBH Germany. In August 1998, the Hays Group increased its holding in Kalyani Lemmerz Ltd to 80% by acquiring an additional 60% of equity held by Kalayni Group. On facts provisions of section 79 are clearly applicable. In view of this, the loss incurred by the assessee company for the A.Y. 1997-98, 1998-99 cannot be set off against the income of the assessee. In view the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act, it could not be said that the Respondent-Assessee had failed to disclose fully and truly all material facts, necessary for assessment. This was a case where the first proviso to Section 147 of the Act will apply as the reopening notice is beyond a period of four years from the end of the relevant Assessment Year. 7. Being aggrieved, Revenue filed an appeal to the Tribunal. By the impugned order, the Tribunal held that, where an assessment order under Section 143(3) of the Act was passed in regular assessment proceedings, evidencing full and true disclosure of all material facts necessary for the purpose of assessment. Then mere non-consideration of Section 79 of the Act by the Assessing Officer cannot lead to the conclusion t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the fact that the issue of shareholding pattern of the company was discussed by the Assessing Officer in his Assessment order passed in the regular assessment proceedings. The only basis of reopening is that the Assessing Officer in the regular assessment did not apply provisions of Section 79 of the Act, to determine the taxable income. This nonapplication of mind by the Assessing Officer while carrying out assessment cannot lead to the conclusion that there has been any failure on the part of the Assessee to truly and fully disclose all material facts necessary for Assessment. The impugned order of the Tribunal correctly placed reliance upon the decision of the Supreme Court in Calcutta Discount Company Ltd., (supra) to hold that not po ..... X X X X Extracts X X X X X X X X Extracts X X X X
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