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TMI Blog2013 (7) TMI 847X X X X Extracts X X X X X X X X Extracts X X X X ..... return of income for the assessment year 1991-92 declaring total income of Rs. 83,400. The case of the petitioner was selected for scrutiny assessment and the assessment came to be framed on January 28, 1994, under section 143(3) of the Act at a total income of Rs. 1,26,120. Thereafter, the petitioner received the impugned notice dated March 30, 2001, reopening the assessment for the assessment year 1991-92. The petitioner requested the respondent to supply the reasons recorded by him for reopening the assessment, pursuant to which a copy of the reasons recorded came to be furnished. Upon perusing the reasons recorded, according to the petitioner, the respondent had no jurisdiction to reopen the assessment, he, therefore, filed the present ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the purchase of flat and that evidence like purchase deed, etc., was not obtainable on record. Inviting attention to the statement of income submitted by the petitioner at the time of the original assessment, Mr. Soparkar pointed out that it was clearly stated therein that the petitioner had purchased a flat at Shreeji Apartment, Near Law Garden, Ahmedabad. It was submitted that before an assessment is framed there are two stages when documents or other material are to be submitted by the assessee. At the first stage, while filing the return of income, when the assessee is required to furnish all the information and documents as required under the Act and the rules framed thereunder. At the second stage, if the Assessing Officer during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er had merely submitted two receipts showing that he had deposited an amount of Rs. 4,15,000 with two different parties, which were not sufficient to prove the investment made for purchase of flats. It was submitted that by not producing supporting evidence like purchase deed, etc., evidencing proof of purchase of the flat in support of his claim for exemption of the said amount under section 54 of the Act, the petitioner had failed to disclose fully and truly all material facts necessary for his assessment and as such, the Assessing Officer is justified in invoking the provisions of section 147 of the Act, even beyond the period of four years from the end of the relevant assessment year. In the present case, the original assessment came t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the sole ground on which assessment is sought to be reopened is that the petitioner had been allowed exemption of Rs. 4,15,000 for the purchase of a residential house while computing his income, and that, in support of such purchase the petitioner had produced receipts showing deposit of the said amount with two different parties, viz., M/s. Gopinath Corporation and M/s. Shreehari Association. According to the respondent, since the receipts filed could not prove the investment made for purchase of flat, and also no evidence like purchase deed, etc., were obtainable on record, the same amounts to failure on the part of the petitioner to disclose fully and truly all material facts. The question that, therefore, arises for consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment, Near Law Garden, Ahmedabad, for Rs. 4,15,000. It appears that at the time of original assessment, the petitioner has produced proof of payment by submitting receipts of two parties, (1) M/s. Gopinath Corporation ; and (2)Shreehari Association. The Assessing Officer, at the relevant time, on the basis of the material produced by the petitioner, has accepted the claim for exemption under section 54 of the Act. From the language employed in section 147 of the Act, it is evident that what is required to be submitted is material facts. In the present case, as noted hereinabove, the material facts, namely, purchase of the flat for Rs.4,15,000 along with other details like location and description of the flat have been stated in the stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ruly all material facts necessary for his assessment for that assessment year. The reasons recorded do not speak of any obligation on the petitioner to produce such documents or that by not producing the same the petitioner had failed to disclose full and true material facts. All that is stated that in absence of the said documents exemption granted under section 54 of the Act was inadmissible. In the affidavit-inreply it has been averred that the petitioner had not disclosed fully and truly all material facts in support of his claim for claiming exemption under section 54 of the Act. However, no foundation is laid in respect of the said averment in the reasons recorded. Moreover, as noted hereinabove, the petitioner was required to state m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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