1987 (12) TMI 75 - AT - Income Tax

Summary

Issues:
1. Jurisdiction under section 147 for reopening assessments.
2. Disclosure of material facts necessary for assessments.
3. Assumption of jurisdiction under sections 147(a) and 147(b).
4. Validity of notices issued under section 148.

Detailed Analysis:
1. The appeals challenged the orders of the CIT(A) regarding the reopening of assessments for the assessment years 1978-79 and 1979-80 under section 147. The main contention was that the conditions precedent for assuming jurisdiction under section 147 were not fulfilled, leading to a request for annulment of the CIT(A) orders.

2. The assessee argued that all necessary facts for assessments were disclosed to the IAC during the original assessments and that there was no subsequent information for reopening the assessments under section 147(b). On the other hand, the Departmental Representative argued that the jurisdiction was rightly assumed by the ITO under section 147 due to the assessee's failure to disclose total income particulars for assets claiming depreciation allowance.

3. The Assessing Officer contended that the assessee did not furnish specific details of plant and machinery against which extra shift allowance was claimed during the original assessments, justifying the assumption of jurisdiction under section 147(a). Additionally, information gathered during the assessment for the following year was cited as subsequent information for jurisdiction under section 147(b).

4. The counsel for the assessee presented evidence of detailed disclosures made to the Assessing Officer during the original assessments, including specific information on machinery and assets. It was argued that no new information was brought forth during subsequent assessments, rendering the reopening of assessments under section 147 unjustified.

5. Upon review, the Tribunal found that there was no omission or failure on the part of the assessee to disclose material facts necessary for assessments. It was concluded that the Assessing Officer lacked jurisdiction to reopen the assessments under both section 147(a) and section 147(b) as no new information was discovered during subsequent proceedings. Consequently, the notices issued under section 148 were deemed invalid, leading to the annulment of the assessments and CIT(A) orders for both years.

6. As a result of the detailed analysis and findings, the appeals were allowed, and the orders of the lower authorities annulling the assessments were upheld by the Tribunal.