TMI Blog2015 (7) TMI 1435X X X X Extracts X X X X X X X X Extracts X X X X ..... provision cannot be applied in a case where the assessee has placed the entire material before the Assessing Authority and the Assessing Authority while passing the original assessment order had applied his mind and a particular notification, only on account of change of opinion, later on without there being any allegation of the petitioner not having disclosed material facts at the time of assessment, cannot empower the Assessing Officer to issue notice under Section 12 of the Act. The fact that a purportedly wrong notification for calculating rate of tax has been applied by the Assessing Authority while the original assessment, for which there are no allegation about suppression of facts by the assessee, cannot be a ground for initiati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rity observed as under and accordingly assessed tax @ 2% under Notification dated 13.9.1989 :- By the impugned notice dated 31.5.1994, the assessing authority sought reassessment of the amount of tax determined vide order dated 22.2.1993; the notice indicated as under:- It is submitted by learned counsel for the petitioner that the respondents were not justified in initiating proceedings under Section 12 of the Act, inasmuch as, the petitioner had disclosed all the facts necessary for assessment and the assessing authority after applying his mind, applied notification dated 13.9.1989 and assessed the petitioner vide assessment order dated 22.2.1993. The issuance of notice is wholly without jurisdiction as Section 12 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act though prescribe for reassessment in case of escaped assessment, or the assessee having been assessed at too low a rate in any year, the said provision cannot be applied in a case where the assessee has placed the entire material before the Assessing Authority and the Assessing Authority while passing the original assessment order had applied his mind and a particular notification, only on account of change of opinion, later on without there being any allegation of the petitioner not having disclosed material facts at the time of assessment, cannot empower the Assessing Officer to issue notice under Section 12 of the Act. A bare look at the notice indicates that the reason indicated is that the Assessing Officer applied too low a ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Indian Income Tax Act, 1922, refers only to primary facts and the duty of the assessee is to disclose such primary facts. There is no duty cast on the assessee to indicate or draw the attention of the Income-tax Officer to what factual or legal, or other inferences can be drawn from the primary facts disclosed. In the case of Tarajan Tea Co. (P) Ltd. (supra), the Hon'ble Supreme Court on coming to the conclusion that there was no omission or failure on part of the assessee to make a return, held the reopening as unsustainable. The law laid down in various judgments as noticed herein-before, is clearly applicable to the facts and circumstances of the present case wherein as noticed herein-before, at the time of passing of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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