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TMI Blog2017 (9) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... rticulars necessary for the assessment of income tax for the relevant year. In the absence of the averment that the assessee has failed to disclose fully and truly all material facts necessary for the assessment, the proceedings for re-assessment could not have been initiated under Section 147 of the Act in the extended period of limitation. - Decided in favour of assessee. - Income Tax Appeal No. 117 of 2016 - - - Dated:- 23-8-2017 - Hon'ble Pankaj Mithal And Hon'ble Umesh Chandra Tripathi, JJ. For the Appellant : Manu Ghildyal For the Respondent : Rishi Raj Kapoor ORDER Heard Sri Manu Ghildyal, learned counsel for the appellant and Sri Prakash, Kumar, Sri Bhupendra Kumar Agarwal, Rishi Raj Kapoor for the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n law, the Ld. ITAT has erred in law and in facts in holding that the action initiated against the assessee u/s 147 of the Act was not legally valid ignoring the fact that the Assessing Officer, on the basis of information received from the Investigation Wing, had prima facie reason to believe that the assessee had omitted to disclose fully and truly all material facts and that as a consequence of such non disclosure, income had escaped assessment within the meaning of Section 147 of the Act? . Apart from the limitation, the other conditions relevant for re-assessment are spelled out in the first proviso to Section 147 of the Act. Section 147 of the Act provides as under:- 147. If the Assessing Officer has reason to believe tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer may assess or reassess such income, other than the income involving matters which are the subject matters of any appeal, reference or revision, which is chargeable to tax and has escaped assessment. A plain reading of the first proviso reveals that for the purposes of initiating re-assessment proceedings, the authorities have to be satisfied that the income chargeable to tax has escaped assessment for the relevant assessment year by reason of:- 1) Failure on the part of the assessee to make a return under section 139 of the Act; 2) Failure on the part of the assessee to make a return in response to a notice issued under sub-section (1) of Section 142 or Section 148 of the Act; or 3) To disclose fully and truly all mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and true material facts necessary for assessment and that its income had escaped assessment for want of such disclosure. The aforesaid finding rendered by the Tribunal is a pure finding of fact. Sri Ghildyal has made an effort to submit that the nature of transaction of ₹ 62 lakhs in the books of accounts of Surendra Kumar Jain, Group of Companies reveal an investment of ₹ 62 lakhs by the assessee and that this was not the accounted money of the assessee which had escaped assessment. The assessee has accepted the entry of ₹ 48 lakhs and not of the balance amount of ₹ 14 lakhs, therefore, it is implicit that he has failed to disclose the true and full particulars necessary for assessment. Such an argument on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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