TMI Blog2006 (1) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... y, 1994 on the ground that the assessee company has not credited excise duty billed to the customers amounting to Rs. 24,30,861 to the P L a/c. 3. The assessee has taken following additional grounds: "1. On the facts and in circumstances of the case the learned AO has legally erred in assuming jurisdiction under s. 147 on 21st July, 1994 which is beyond the limitation provided under the proviso to s. 147, there being no concealment of furnishing inaccurate particulars of income which is a condition precedent of assuming jurisdiction beyond a period of four years from the end of the assessment year. 2. On the facts and in the circumstances of the case the learned AO has legally erred in assuming jurisdiction under s. 147 based on pure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO when he completed the regular assessment under s. 143(3). As per the proviso to s. 147 no action can be taken under said section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable under the Act has escaped assessment by reason of failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment. According to him, since all the material facts were fully and truly disclosed by the assessee, as such the period of limitation to issue notice under s. 148 expired on 31st March, 1994 and the notice issued on 21st July, 1994 was beyond limitation. 7. The learned Departmental Representative Shri Vijay Shankar has strongly objected to the ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of opinion and the question of limitation was not there before the learned CIT(A). 10. We are of the opinion that the Expln. 1 of s. 147 cannot be used by the AO in order to assume jurisdiction. The said Explanation cannot act like a sword in the hands of the AO. Moreover Expln. 1 to s. 147 deals with production of account books or other material before the AO. For the sake of convenience the Expln. 1 is reproduced as under: "Explanation 1-Production before the AO of account books or other evidence from which material evidence could with due diligence have been discovered by the AO will not necessarily amount to disclosure within the meaning of the foregoing proviso." In our view the word "production" used in the above Explanation s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g with the return. Such documents cannot be considered "as produced" for the purpose of Expln. 1 of s. 147. It is not the case of the Revenue that the excise duty billed to the customers was not shown in the balance sheet, which was filed along with the return. 12. In order to assume jurisdiction to issue notice under s. 148 beyond four years from the end of the assessment year, there must be failure on the part of the assessee to discharge (sic-disclose) fully and truly all the necessary facts necessary for his assessment. The copy of the reasons recorded as supplied by the Departmental Representative is reproduced as under: "In this case, the assessment for the asst. yr. 1989-90 has been completed under s. 143(3) on 25th March, 1992 d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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