TMI Blog2007 (7) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... ENT The Income-tax Appellate Tribunal, Delhi Bench, Delhi has referred the following two questions of law under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for the opinion of this court: "Whether, on the facts and circumstances of the case, the hon'ble Tribunal was legally justified in holding that the reasons for reopening assessment under section 147(a) are invalid, although no accounts or details of loans/withdrawals were filed with the return of income that was taken as the basis to attribute failure of the assessee to disclose fully and truly the material facts? Whether, on the facts and circumstances of the case, the hon'ble Tribunal was legally justified in holding that the reopening of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee to disclose fully and truly all material facts necessary for the aforesaid assessment years and the reopening of assessment proceedings was done by the Assessing Officer on the basis of the material/information gathered by him while making the assessment for the subsequent years. According to the Tribunal, the case fell under section 147(b) of the Act for which limitation had expired and, therefore, the reassessment order could not have been made at all. 4. We have heard Sri Shambhu Chopra, learned counsel for the Revenue, and Sri R. S. Agrawal, learned counsel for the respondent-assessee. 5. Sri Chopra, learned counsel for the Revenue, submitted that it has come on record that the respondent had not filed the accounts to show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er account of the respondent maintained by the said company was filed. In view of the absence of these details the Assessing Officer could not examine the taxability of advances/loan raised by the respondent. Thus, we are of the considered view that non-disclosure of the amount of loan/advances by the respondent did amount to mean that it has not fully and truly disclosed material facts necessary for reopening of the assessment proceedings. Thus, the action of the Assessing Officer in initiating proceedings under section 147(a) of the Act cannot be faulted. The view of the Tribunal to the contrary, therefore, cannot be sustained as it is contrary to law. 8. So far as the question of amount of advances/loan being treated as deemed divide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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