9911796707
TMI Blog1972 (8) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... The petitioner was a partnership firm which was dissolved on 20th March, 1964. For the assessment year 1960-61, the petitioner filed its return of income along with a trading and profit and loss account. The petitioner was engaged in the manufacture of handloom goods, and for the purpose of manufacture, it had imported 4,310 lbs. of art silk for the value of Rs. 20,772 under an import licence. At the time of the assessment, the Income-tax Officer appears to have asked the petitioner to furnish information about the quantity and the value of the imported art silk used in the manufacture. The petitioner had furnished the above information required by the Income-tax Officer. This is clear from certain entries made by the Income-tax Officer in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facie conclusion that a part of the income of the petitioner had escaped assessment in view of certain non-disclosure of material facts at the time of the original assessment. The only point that is made out in the counter-affidavit of the respondent as a ground for initiation of reassessment proceedings under section 147 of the Act is that the petitioner furnished only trading and profit and loss account along with the return of income, and that he did not furnish any particulars regarding the details of import licences granted to him, how he dealt with such licences, the nature of commodities imported, the nature of cloth manufactured out of the imported art silk yarn, etc. It has also been stated therein that the petitioner has kept back ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s assessment for that year. It was also held that both these conditions were conditions precedent to be satisfied before the Income-tax Officer could have jurisdiction to issue a notice for the assessment or reassessment beyond the period of four years, but within the period of eight years. It was also laid down in that case that the assessee's duty to disclose fully and truly all the materials necessary for the assessment does not extend beyond the full and truthful disclosure of the material facts, that he is not expected to assist the Income-tax Officer to draw proper inference from the material facts placed by him. In Commissioner of Income-tax v. Burlop Dealers Ltd. the Supreme Court again reiterated the same legal position. In that ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioner is not clear either from the counter-affidavit or from the materials available in the assessment records. As pointed out by the Supreme Court in the various decisions touching on this point, the Income-tax Officer must come to a prima facie conclusion on the question of escapement of income before he initiates the reassessment proceedings by the issue of notice. But, in this case, there is no material placed before us either in the counter-affidavit or otherwise to show how and on what material the Income-tax Officer felt that there has been as escapement of income. In view of the said circumstances, the initiation of proceedings by the respondent under section 147 of the Act by the issue of the notice should be held to be w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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