TMI Blog1986 (3) TMI 342X X X X Extracts X X X X X X X X Extracts X X X X ..... se, the reassessment proceedings under section 147(a) of the Income-tax Act, 1961, initiated by the Income-tax Officer for the assessment years 1955-56 to 1962-63 against the assessee were valid in law ? 2.Whether, on the facts and in the circumstances of the case, the Tribunal was justified in upholding the action under section 147(a) of the Income-tax Act, 1961 for the assessment years 1955-56 to 1962-63 ? 2. The real question, therefore, is whether there were facts from which it could be believed that there was failure or omission to disclose fully and truly all material facts necessary for the assessment as a result of which income has escaped assessment. The assessment was sought to be reopened for the years 1955-56 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the valuation report was discussed and the amount of depreciation was more or less agreed to between the parties. The revenue's case, on the other hand, is that which portion of the assets consisting of masonry work and which of earth work was not discussed or disclosed. The assessee's contention before the revenue authorities was that the primary facts were discussed fully and it was open to the revenue to examine into this aspect greater and it was not possible after the lapse of such a long time to say actually whether what portion of asset consisted of earth work has been disclosed or not. It appears, however, from the order of the Tribunal that by its last letter addressed to the ITO the assessee had conveyed its agreement that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion, therefore, is, whether there was failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment and further whether such income escaped assessment and whether such' escapement or underassessment has been caused as a result of the failure or omission on the part of the assessee to disclose fully and truly all material facts. What facts are material facts would depend upon the facts and circumstances of a particular case. This follows from the scheme of the section and is well settled by the authorities of this Court. 6. It is the admitted position that the assessee had not disclosed either by valuation report or by statement before the ITO as to what portion or what proportio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s all the material and relevant facts, the assessing authority might not. In respect of the material failure, the omission to disclose may be deliberate or inadvertent. That was immaterial. But if there is omission to disclose material facts, then, subject to the other conditions, jurisdiction to reopen is attracted. It is sufficient to refer to the decision of this Court in Calcutta Discount Co. Ltd.'s case (supra) where it had been held that if there are some primary facts from which reasonable belief could be formed that there was some non-disclosure or failure to disclose fully and truly all material facts, the ITO has jurisdiction to reopen the assessment. This position was again reiterated by this Court in Malegaon Electricity Co. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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