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TMI Blog2014 (10) TMI 1061X X X X Extracts X X X X X X X X Extracts X X X X ..... mpugned notice dated 13 March 2006. 2] The petition was admitted on 12 February 2007 and interim relief restraining the respondentrevenue for proceeding with the impugned notice dated 13 March 2006 was granted. 3] For the assessment year 19992000, the petitioner filed its return of income on 30 December 1999. Alongwith return of income, the petitioner also filed Audited Profit & Loss Account and Balancesheet as required under Section 139 of the Act. The petitioner in its Balancesheet at Schedule 21 (10)(c) of the Notes to Annual Accounts, made the following disclosure. "c) Loans aggregating to Rs.121,928 thousand ...... Out of the above, certain loans granted in connection with a property development proposal aggr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id. Assessee company should have been brought to tax interest accrued and due to the extent of Rs.240.77 lacs for A.Y.992000 and the said amount should have been added to the total income of the assessee company resulting into potential loss of revenue of Rs.84.27 lacs. In view of the above, I have reason to believe that income chargeable to tax for A.Y. 992000 has escaped assessment for failure on the part of the assessee company to disclose fully and truly all the material facts required for assessment for A.Y. 992000". 5] The petitioners, by its letter dated 9 June 2006 objected to the impugned notice. In its objection the petitioner inter alia pointed out that all material facts had been fully and truly disclosed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the part of the petitioner which led the Assessing Officer to believe that the income chargeable to tax has escaped assessment. Thus there is absence of nexus between the reasons indicated and the primafacie conclusion that there is failure to disclose all material facts fully and truly at the time of regular assessment proceedings. 7] As against the above, Mr. Pinto, learned Counsel for the respondentRevenue in support of the impugned notice submits as under: (a) There has been failure on the part of the petitioner to truly and fully disclose material facts necessary for assessment. As far as Notes to Annual Accounts are concerned, on which the petitioner has placed reliance, it is submitted that it was hidden in the Balan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act, containing the aforesaid information in the Notes to Annual Accounts (referred to herein above), gives the reason why according to the petitioner the accrued interest on the loan was not being taken into account since 1st April 1997. Moreover the fact that these particulars had been disclosed truly and fully by the petitioner is also evident from the reasons furnished to the petitioner in support of the impugned notice which itself refers to and relies upon Schedule 21 Notes to Annual Accounts to indicate there has been a failure to truly and fully disclose all material facts necessary for assessments. We are unable to understand/accept the submission made on behalf of the Revenue that Schedule 21 Notes to Annual Accounts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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