9911796707
TMI Blog1990 (7) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... nds on merits taken out by the assessee. 3. The factual position which emerges from the papers filed before us and which was, in fact, projected to the authorities below is as under. 4. This factual position is very important and has to be kept in focus in determining the issue of legality of the proceedings under s. 147(a). 5. For the asst. yr. 1972-73 the assessee had filed return on19th Aug., 1974declaring income at Rs. 6,000 and he had been accordingly assessed under s. 143(3) on28th Aug., 1974by the ITO, Dist. VI(10), Addl.New Delhi. For the asst. yr. 1973-74 an assessment under s. 143(1) had been made by the ITO, Dist. VI(2) and VI(10), Addl.,New Delhion6th Sept., 1974on a total income of Rs. 6,500. A notice of demand had been i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sons recorded and projected to the assessing authority the judgment of the Hon'ble Delhi High Court in the case of New Bank of India Ltd. vs. ITO Anr. (1980) 15 CTR (Del) 84 : (1982) 136 ITR 679 (Del) to emphasise that it is the duty of the assessing authority to provide the reasons for reopening of the assessment to the assessee. It appears that the learned counsel for the assessee had to seek inspection of the record as no reasons recorded were supplied. This becomes clear from the letters dt.27th Feb., 1986and11th March, 1986appearing at pages 8 and 9 of the assessee's paper book. In the letter dt.11th March, 1986, the learned counsel for the assessee projected to the assessing authority that the proforma filled up for obtaining the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. It was on a later stage that it became a case of reassessment. ITO and his action on this point in confirmed." To our mind is, this neither here not there. Therefore, the assessee is rightly aggrieved that the learned Commissioner erred in not declaring proceedings under s. 147(a) as ab initio void. 9. Under s. 147(A) if the ITO has reason to believe that by reason of the omission or failure on the part of an assessee to make a return under s. 139 for any assessment year to the ITO or to disclose fully and truly all material facts necessary for his assessment for that year, income chargeable to tax has escaped assessment for that year, he may issue notice under s. 148 for that purpose. But before a notice under s. 148 is issued, the la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sanction of the Commissioner obtained on misrepresentation was not a valid sanction. Similarly, the Orissa High Court in the case of Govinda Choudhury and Sons vs. ITO (1977) 109 ITR 370 (Ori) has held that the ITO is obliged under law to make a full report of the correct state of affairs and furnish the Commissioner adequate material to enable him either to accord or withhold sanction. These are the authorities on which reliance has been placed by the learned Counsel for the assessee and we are of opinion the reliance is well placed. 11. A perusal of the reasons recorded on the back of the defective proforma shows that the ITO did not apply his mind at all to the facts of the case and was merely guided by a report of the A.D.I. suggesti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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