2018 (12) TMI 52

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..... ed under Section 143(3) read with Section 147. A rectification of mistake was also carried out to the order of re-assessment. Later on 12.12.2003, after the four year period as stipulated in Section 147, a further notice under Section 148 was issued. The present notice was with respect to the repetition of a claim made in the subject year, which was actually allowed in the previous year. 2. The assessee claimed that even during the re-assessment proceedings initiated earlier, within the four year period, there was a full disclosure made and hence there could be no re-assessment on the basis of non-disclosure of true and full material facts for the purpose of assessment. 3. The question of law framed is as to whether mere disclosure in a r .....

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..... contract bills were made by the A.O. himself for the previous assessment year. The expenses were also allowed on the estimation of profits. The assessee had claimed the benefit, since the receipt was accounted by the assessee in the previous year to the subject assessment year. What is pertinent is that the earlier years, assessment was completed making the estimation on certain contract receipts on 24.11.2000 under Section 143(3) read with Section 147. The return of income for 1998-99 was filed on 31.03.2000 prior to the completion of assessment of the previous assessment year. The estimation and allowance of expenditure would not be in the knowledge of the assessee at the time when the returns were filed for the subject assessment year, i .....

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..... out such assessment under Section 143(1) and 143(3) ought to have been more careful in having scrutinized the assessment order of the earlier year wherein the additions were made estimating a profit with respect to certain contract receipts. In any event, there could not have been any non-disclosure of full and true material facts alleged by the assessee since the return was filed long prior to the estimation made. In such circumstances, we are of the opinion that the proceedings itself was misconceived and the assessee had to file a first appeal in which the proceedings under Section 147 was set aside. Revenue has again gone in appeal before the Tribunal and revision before this Court. In such circumstances, we are of the opinion that the .....

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