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2013 (10) TMI 2 - HC - Income TaxRecording of reasons to believe for issuance of notice u/s 148 of the Income Tax Act Necessity for re-assessment u/s 147 of the IT Act Non inclusion of receipt of Japanese Yen 8,99,92,707 (Rs.3,35,58,280/-) in returned income - Held that - it will be just and proper to direct that the petitioner should furnish complete and full details before the Assessing Officer in the reassessment proceedings in regard to receipt of Japanese Yen 8,99,92,707 in India and the fact that the said amount was shown in the taxable income and received in the previous year. In case the petitioner is able to satisfy the Assessing Officer on the said aspect, necessary and consequential assessment order will follow. Only in case the petitioner is not able to satisfy the Assessing Officer on the said aspect, the Assessing Officer can proceed with the reassessment in accordance with law. We clarify that only one assessment order can be and will be passed and the petitioner cannot insist that a separate order be passed. - Decided partly in favor of assessee.
Issues:
Impugning reassessment proceedings for Assessment Year 2006-07 under Section 148 of the Income Tax Act, 1961. Analysis: The reassessment proceedings were initiated within the stipulated time frame of four years from the end of the relevant assessment year, rendering the additional requirement under the first proviso to Section 147 unnecessary. The petitioner initially declared "nil" income under normal provisions and Rs. 3,15,36,278/- under Section 115JB for the said assessment year. Subsequently, the Assessing Officer issued a reassessment notice based on information regarding a substantial sum received from a Japanese entity in the previous financial year. The petitioner belatedly disclosed the amount in question but failed to provide complete details promptly. The petitioner contended that the sum had already been included and taxed in the earlier assessment year, which remained unverified by the authorities. The court emphasized the importance of factual verification during assessment proceedings and directed the petitioner to furnish comprehensive details to the Assessing Officer for a fair assessment. The judgment highlighted the necessity for the Assessing Officer to consider all relevant information before proceeding with reassessment, ensuring a thorough examination of facts to avoid unnecessary harassment to the taxpayer. The court concluded by instructing that only one assessment order would be issued based on the provided information, maintaining fairness and efficiency in the process.
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