9911796707
TMI Blog2018 (12) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... - We find that there can be no allegation raised of nondisclosure of full and true material facts, especially since it to be noticed that the estimation of profits on the contract bills were made by the A.O. himself for the previous assessment year. The expenses were also allowed on the estimation of profits. The assessee had claimed the benefit, since the receipt was accounted by the assessee in the previous year to the subject assessment year. What is pertinent is that the earlier years, assessment was completed making the estimation on certain contract receipts on 24.11.2000 under Section 143(3) read with Section 147. The return of income for 1998-99 was filed on 31.03.2000 prior to the completion of assessment of the previous assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t year, which was actually allowed in the previous year. 2. The assessee claimed that even during the re-assessment proceedings initiated earlier, within the four year period, there was a full disclosure made and hence there could be no re-assessment on the basis of non-disclosure of true and full material facts for the purpose of assessment. 3. The question of law framed is as to whether mere disclosure in a re-assessment proceedings would permit the assessee to be absolved of the liability of re-assessment, after four years but within six years, if there was no full and true disclosure at the time of the original assessment, ie., under Section 143(1)(a). 4. We notice on facts that for the year 1997-98, the assessment was completed unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er years, assessment was completed making the estimation on certain contract receipts on 24.11.2000 under Section 143(3) read with Section 147. The return of income for 1998-99 was filed on 31.03.2000 prior to the completion of assessment of the previous assessment year. The estimation and allowance of expenditure would not be in the knowledge of the assessee at the time when the returns were filed for the subject assessment year, ie., 1998-99. 6. We are surprised that the proceeding was initiated under Section 147 on the ground of non-disclosure of full and true material facts for the purpose of assessment. As we noticed, the return of income for the assessment year 1998-99, the subject assessment year, was filed on 31.03.2000. An assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... true material facts alleged by the assessee since the return was filed long prior to the estimation made. In such circumstances, we are of the opinion that the proceedings itself was misconceived and the assessee had to file a first appeal in which the proceedings under Section 147 was set aside. Revenue has again gone in appeal before the Tribunal and revision before this Court. In such circumstances, we are of the opinion that the assessee has to be reimbursed the costs before the Tribunal and this Court which we quantify it as ₹ 10,000/-. We, hence, concur with the order of the Tribunal as to the proceedings being bad, on the different reasoning adopted by us as above and refuse to answer the question of law, which does not arise ..... X X X X Extracts X X X X X X X X Extracts X X X X
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