TMI Blog1997 (3) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the reopening of the assessment ? " The facts of the case are as under : The assessment of the assessee for the assessment year 1959-60 was originally completed on July 31, 1962, and his income was computed at Rs. 23,778. The assessee had filed wealth-tax returns for the assessment years 1958-59 and 1959-60 on July 26, 1962, and in the said returns, the assessee had disclosed circulating capital of Rs. 30,000 but in the wealthtax returns for the assessment year 1960-61, the circulating capital had gone up to Rs. 1,25,000. Because of this, in the course of the assessment for the assessment year 1960-61, the assessee was asked to explain the sudden increase in his capital. The assessee claimed that the increase was on account of sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax Officer on the basis of the information received by him from the assessment under the Wealth-tax Act for the assessment year 1960-61. We find that this controversy now stands concluded against the assessee by the decision of the Supreme Court in Sri Krishna Pvt. Ltd. v. ITO [1996] 221 ITR 538. In that case also, the Income-tax Officer having found the claim of the assessee of hundi loans to be bogus in his assessment for the assessment year 1960-61, issued a notice to the assessee under section 148 of the Act for the assessment year 1959-60. The issuance of notice was challenged on the ground that the assessment for the assessment year 1959-60 could not have been reopened on the basis of information discovered in the subsequent ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of reopening only. The question is whether, in the above circumstances, the assessee can say, with any justification, that he had fully and truly disclosed the material facts necessary for his assessment for that year. Having created and recorded bogus entries of loans, with what face can the assessee say that he had truly and fully disclosed all material facts necessary for his assessment for that year. True it is that the Income-tax Officer could have investigated the truth of the said assertion--which he actually did in the subsequent assessment year--but that does not relieve the assessee of his obligation, placed upon him by the statute, to disclose fully and truly all material facts. Indubitably, whether a loan, alleged to have been t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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