TMI Blog1992 (2) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... as follows : "26-12-1990 The assessee filed his return of income on October 20, 1989, showing an income of Rs. 22,100 and an assessment was made under section 143(1)(a) on July 2, 1990 as per return so filed. Now, it is noted that the assessee had an income of Rs. 1,59,047 within the meaning of section 69A of the Income-tax Act, 1961, representing the value of jewellery, etc., vide order under section 132(5) of the Income-tax Act, 1961, dated September 28, 1989 in the case of the assessee relating to this assessment year which has escaped assessment for failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment of his total income for the assessment year. In consequence of the above inf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 143(1)(a) as a provision immunising the assessee from reassessment once and for all. Such a view is not acceptable. It is not warranted by the scheme of the Act. That apart, no construction which disables the taxing machinery and lets the assessee get away with not paying tax to the extent due should be adopted. If there be any element of non-disclosure in the assessment under section 143(1)(a), the Revenue will be within its legitimate right to bring the undisclosed income to tax. The contention of Mr. Bhattacharjee, if accepted, would amount to saying that reassessment is limited only to non-disclosure in the process of making assessment after enquiries under section 143(2) read with section 143(3). Simply because the return of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has immunity from reassessment under section 147, and reassessment, if warranted, can be done by resorting only to section 143(2). Therefore, where the limitation of time for invoking section 143(2) has expired, the Revenue stands powerless and totally disarmed. The escapement of income has to be countenanced, it is contended. We have not been able to persuade ourselves to accept any such plea, howsoever novel. In our view, a return after its acceptance, whether in a summary manner or after scrutiny, may itself lead to reassessment proceedings provided the conditions for reassessment under section 147 exist. The major consideration in reassessment is whether the assessee has disclosed truly and fully all materials necessary for assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 147, notwithstanding the fact that there are other remedies open to him under the Act. It cannot, therefore, be accepted that the reassessment under section 147 is vitiated because the Assessing Officer failed to invoke his power to correct the assessment already completed under section 143(1) by issuing a notice under section 143(2) of the Act. But then, the learned advocate for the appellant contends that the materials disclosed do not satisfy the reopening of the assessment inasmuch as the Assessing Officer was fully aware of the findings made in the order under section 132(5) of the Act. We are, however, unable to accept this contention. The purpose of the order under section 132(5) is altogether different. It is by no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be assailed. The Assessing Officer cannot be forced to abandon resort to reassessment merely on the ground that the Officer had, before filing the return, made a tentative estimate of the assessee's probable liability under section 69A in an order under section 132(5). As indicated earlier, the doctrine of merger does not apply because the order under section 132(5) is not an assessment order but is part of the search and seizure operations. The assessee had, at any rate, a duty to disclose the fact of seizure of assets even if he considered the value of such assets not assessable as income under section 69A. Without such disclosure, his return in the light of the facts of the case cannot be said to be a return that furnished all primar ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
