TMI Blog1974 (1) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax Officer, "G" Ward, Companies Dist. II, Calcutta, on the ground that these notices are illegal, invalid and inoperative because the condition precedent for the assumption of jurisdiction under section 147(a) of the said Act did not exist as the said respondent No. 1 was purporting to reopen the assessments on the basis of certain information in the form of a report of the underground measurement of the colliery by the mining officials of the Government of West Bengal. For the assessment year 1961-62, the petitioner filed its return of income and the assessment was completed under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). The petitioner preferred an appeal against the said order of assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the petitioner's income chargeable to tax for the said assessment years had escaped assessment within the meaning of section 147 of the said Act. On the 20th April, 1970, and 7th December, 1970, the petitioner filed return of income for the said assessment years in response to the said notices issued under section 148 of the Act under protest as no income had escaped assessment due to omission or failure on the petitioner's part to disclose fully and truly all primary and relevant facts. Subsequently, it was ascertained that those notices under section 148 of the Act had been issued as a result of the report of the underground measurement made by the mining officials of the Government of West Bengal, as disclosed by the respondent No. 1, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use Street, Calcutta, the 14th May, 1969. Sub. : Discrepancy in the reported figure of raisings and surface stocks at Selected Samla Colliery. Dear Sir, I am directed to enclose a copy of the report of the joint inspection carried out on January 9, 1967, and January 10, 1967, by the Assistant Coal Supdt., Ranigunj Estate Branch, Directorate of Mines, and Minerals, Government of West Bengal, Calcutta, the contents of which are self-explanatory. This information is conveyed to you for such action as you may deem necessary. Yours faithfully, (H. B. Mitra) Dy. Asst. Coal Controller. Encl.: as above. Copy of letter No. 285-95/CMP dated January 30, 1969, from Chief Mining Officer, Government of West Bengal, Asansol, to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 1963-64 asstt. yr.) is estimated by me on the basis of 14.3 per cent. of raising disclosed by the assessee at 19,415 m.t. Rs. 4,20,141 being value of 19,415 m.t. of coal @ average sale rate of Rs. 21.74 per m.t. represents, I have reason to believe, income which escaped assessment for failure on the part of the assessee in disclosing all material facts truly and fully that was necessary for their assessment. (S. K. Bhattacharyya) I.T.O., " G " Ward, Comp. Distt. II,Calcutta." The petitioner has all along pleaded and it is also not denied or disputed by the respondent that before the receipt of the said report, the petitioner had no knowledge of this fact about under-reporting of coal raisings by the petitioner at the time of orig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve failed to disclose it, unless it is a matter which he knows (vide P. R. Mukherjee v. Commissioner of Income-tax [1956] 30 ITR 535 (Cal) ). There has been no failure on the part of the assessee to make a return of his income, because he had no knowledge at the material time that there was under-reporting of raising of coal which fact has been revealed after 11 years of the assessment from the report of the mining authorities. The Income-tax Officer cannot take any action under section 147(a) except under clause (b) of section 147 where the Income-tax Officer has in consequence of information in his possession reason to believe that income has escaped assessment. From the facts disclosed in the instant case, it leads to the only conclusion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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