9911796707
TMI Blog2012 (7) TMI 695X X X X Extracts X X X X X X X X Extracts X X X X ..... me for the assessment year 19961997 on 30.11.1996 declaring total loss of Rs.9,08,820/which was accompanied by the statement of income, audited annual accounts, depreciation statement and other enclosures. The return was processed under section 143(1)(a) accepting the returned income. Thereafter, on 30.3.2001 assessment came to be framed under section 143(3) of the Act by the then Assessing Officer at a loss of Rs.6,12,316/. By the impugned notice dated 4.2.2003, the assessment is sought to be reopened under section 147 of the Act. In response to the said notice, the petitioner filed fresh return of income on 3.3.2003 declaring loss of Rs.7,24,810/stating that the impugned notice is bad in law and called upon the respondent to furnish the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial facts, assumption of jurisdiction by the Assessing Officer under section 147 of the Act, is invalid. Referring to the reasons recorded by the Assessing Officer for reopening the assessment, it was submitted that there is no allegation therein to the effect that there was any failure on part of the petitioner to disclose full and true particulars, in the absence of which the requirements of the proviso to section 147 of the Act are not satisfied and as such, the impugned notice is rendered unsustainable. It was also contended that at the time of framing the assessment under section 143(3) of the Act, all necessary particulars had been furnished to the Assessing Officer, who while issuing notice under section 142(1) of the Act had speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 142(1) or section 148 or (ii) to disclose fully and truly all material facts necessary for his assessment for that assessment year. 7. In facts of the present case, undisputedly the assessment is sought to be reopened after the expiry of a period of four years from the end of relevant assessment year and as such, the conditions precedent for exercise of powers under section 147 of the Act as postulated under the proviso thereto are required to be satisfied before the Assessing Officer assumes jurisdiction thereunder. 8. In the present case, it is not the case of the Assessing Officer that the petitioner has failed to furnish return under section 139 or in response to a notice under section 142(1) or under section 148. Under the circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he commencement of production was preoperative expenditure under capital work in progress was, therefore, of capital nature and not revenue expenditure as claimed by the petitioner and as such, the same was required to be disallowed. From the reasons recorded there is nothing which is indicative of any default on the part of the petitioner in furnishing any material particulars leading to income chargeable to tax having escaped assessment. Under the circumstances, the conditions precedent for exercise of powers under section 147 of the Act after the expiry of a period of four years from the end of the relevant assessment are clearly not satisfied. 10. Another aspect of the matter is that even in the order disposing of the objections, all t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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