9911796707
TMI Blog2013 (5) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... urt in the case of Duli Chand Singhania [2003 (12) TMI 23 - PUNJAB AND HARYANA High Court] that, in the absence of an allegation in the reasons recorded that the escapement of income had occurred by reason of failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment, any action taken by the Assessing officer under Section 147 beyond the four year period would be wholly without jurisdiction. In the present case also, there is no whisper in the purported reasons of the petitioner having failed to disclose fully and truly all the material facts necessary for its assessment. Thus, the necessary ingredients of the provisions of Section 147 are not satisfied. - WP (C) 7943/2011 - - - Date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cilla. This Society has created a corpus of special fund amounting to Rs.10 crores. The society earned interest on this special fund but did not disclose it in its return for the reason that the money belonged to M/s. REC i.e. Assessee Company and any income earned was also on behalf of Assessee Company. The ITAT, Hyderabad in its consolidated order in ITA No. 1112 to 1115 1198 to 1199 of 2005, 1635 of 2008 and 570 of 2009 dated 13.01.2010 for assessment year 1999-00 to 2006-07 had held that this income was not taxable in the hands of the society but ought to be taxed in the hands of the assessee company. The ACIT-Cir-1, Karimnagar has quantified such income at Rs.24,50,000/- on account of interest on REC Bonds Rs.45,44,199/- on account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner before the notice under Section 148 had been issued. He also submitted that the petitioner had not shown the interest income mentioned in the reasons in its return for the relevant year. The interest income in question arose out of the loan advanced by the petitioner to the Cooperative Electrical Supply Society Limited (Siricilla). The circumstances in which the interest income arose are indicated in the purported reasons which have been extracted above. It was contended on behalf of the revenue that it was only pursuant to the Tribunal s order that the notice under Section 148 had been issued. Therefore, according to the learned counsel for the respondent, it was only complying with the directions given by the Tribunal. The le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to speak of any allegation, that the petitioner had failed to disclose fully and truly all material facts necessary for assessment and that because of this failure there has been an escapement of income chargeable to tax. Merely having a reason to believe that income had escaped assessment, is not sufficient to reopen assessments beyond the four year period indicated above. The escapement of income from assessment must also be occasioned by the failure on the part of the assessee to disclose material facts, fully and truly. This is a necessary condition for overcoming the bar set up by the proviso to Section 147. If this condition is not satisfied, the bar would operate and no action under Section 147 could be taken. We have already mention ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
