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TMI Blog2011 (1) TMI 1032X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) TMI 45 - GUJARAT High Court] 250 ITR 229 (Guj) for the purpose of arriving at the opinion that income has escaped assessment has been reversed by the decision of Gujarat State Co-operative Bank Ltd. v. CIT [2001 (8) TMI 15 - SUPREME Court] which forms the basis for reopening of assessment, itself is no longer good law and as such the very substratum for reopening the assessment falls - In favour of assessee. - SCA NO 11834/02 - - - Dated:- 11-1-2011 - HARSHA DEVANI MS., ANTANI H. B., JJ. Judgment: Ms. Harsha Devani J.- 1. This petition under article 226 of the Constitution of India challenges notices dated May 30, 2001 issued under section 148 of the Income-tax Act, 1961 ("the Act") whereby the assessments of the petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ior advocate appearing on behalf of the petitioner has submitted that in so far as the assessment years 1991-92, 1992-93, 1993-94, 1994-95 and 1995-96 are concerned, the impugned notices which have been issued on May 30, 2001 are clearly beyond a period of four years from the end of the relevant assessment years. In the circumstances, in the absence of any failure on the part of the petitioner to disclose fully and truly all material facts necessary for its assessment, the assumption of jurisdiction by the Assessing Officer is invalid. In respect of the other assessment years, attention is invited to the reasons recorded for reopening assessment to point out that the sole basis for reopening assessment is a subsequent decision of the Gujara ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there should be failure on the part of the assessee (i) to make return under section 139 or in response to notice issued under sub-section (1) to section 142 or section 148, or (ii) to disclose fully and truly all material facts necessary for his assessment for that assessment year. In the facts of the present case, it is an admitted position that the first situation does not exist. In so far as the second requirement is concerned, a perusal of the reasons recorded indicates that there is no allegation to the effect that income has escaped assessment on account of any failure on the part of the petitioner to disclose fully and truly all material facts necessary for its assessment for the assessment years under consideration. In the circums ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decided afresh makes it abundantly clear that the finding of this court in Gujarat State Co-operative Bank Ltd. v. CIT [2001] 250 ITR 229 (Guj) does not survive. This court for the reasons stated in the said decision also held that the apex court has categorically overruled the reasoning in the case of Gujarat State Co-operative Bank Ltd. v. CIT [2001] 250 ITR 229 (Guj) relatable to statutory reserves. In the circumstances, the decision of this High Court, which forms the basis for reopening of assessment, itself is no longer good law and as such the very substratum for reopening the assessment falls. In the circumstances, no useful purpose would be served in reopening the assessment. The impugned notices, therefore, cannot be sustained. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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