TMI Blog1998 (12) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings provided under section 147, proviso, or is covered by the limitation provided under section 149. The proviso to section 147 reads as under : "Provided that where an assessment under sub-section (3) of section 143 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four 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 sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we reproduce the reasons recorded in one of the cases, viz., Special Civil Application No. 3357 of 1993 by way of illustration : "The return of income in this case was filed on July 27, 1982, declaring therein a total income of Rs. 28,58,380. The assessment for which was completed on February 8, 1984 under section 143(3). Verification of the records reveals that the assessee-company had received refund of excise duty amounting to Rs. 60,30,182 in the accounting year relevant to the assessment year 1982-83 for the duties paid on blended yarn manufactured by the assessee prior to March 17, 1972. The assessee-company in the course of assessment proceedings had taken the stand that the said liability is not ceased liability, hence, cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee that since the matter about refund was sub judice and the question of refund has not become final and the liability to pay excise duty has not come to an end as the assessee was maintaining accounts on mercantile basis, the said amount cannot be brought to tax under section 41. However, subsequent to that, as a result of the Allahabad High Court judgment in Swarup Vegetable Products Industries Ltd. (No. 1) case [1991] 187 ITR 412, the Assessing Officer thought that his earlier decision has been erroneous as a result of which the income has escaped assessment. It is a clear case where the Assessing Officer has no reason to link escapement of income from assessment with non-disclosure of any material fact necessary for his assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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