9911796707
TMI Blog2019 (2) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act" for short). The impugned notice seeks to reopen the assessment for the assessment year 2011-12. 3. The facts giving rise to this petition are as under:- (a) On 30.9.2011, the petitioner filed its return of income declaring a loss of Rs. 256.39 crore for the subject assessment year 2011.12. In the return of income, the petitioner had interalia claimed as income an amount of Rs. 1.84 crore earned on fixed deposits. The above amount of Rs. 1.84 crore was credited to the profit and loss account and treated by the petitioner as a part of its business income. (b) The Assessing Officer took up the above return of income for scrutiny assessment. After detailed examination, the Assessing Officer disallowed the the claim of loss on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credited rental income of Rs. 38,43,52,860/- and interest on fixed deposit of Rs. 1,84,86,795/- along with Rs. 10,52,198/- as other misc. Receipts. Assessee also claimed expenditure of Rs. 2,64,27,57,147/- against the above said incomes. At the time of scrutiny, department disallowed all claimed expenditure of Rs. 2,64,27,57,147/- with a view that assessee has not earned any business income during the year. Department also disallowed all brought forward losses as considering the view that the assets & liabilities reflected in the books as on 31.3.2011 (include balance as on 6.6.2015) have been accounted in the financial statement pursuant to Provisional Transfer Scheme which has not attained its finality for the claim of brought forward lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith a view that assessee has not earned any business income during the year. Department also disallowed all brought forward losses as considering the view that the assets and liabilities reflected in the books as on 31.3.2011. Interest on FD of Rs. 1,84,86,795/- from the deposited amounts were required to be taxed as income from other sources. This omission resulted in under assessment of income of Rs. 1,84,86,795/- leading to short levy of tax of Rs. 61,40,851/-. 6. Escapement of income chargeable to tax in relation to any assets (including financial interest in any entity) located outside India: Not Applicable. 7. Findings of the AO on true and full disclosure of the material facts necessary for assessment under Proviso to Section 147: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... along with Rs. 10,52,198/- as other misc. Receipts. Interest on Fixed Deposit of Rs. 1,84,86,795/- were required to be taxed on income from other sources. It is evident from the above facts that the assessee had not truly and fully disclosed material facts necessary for his assessment for the year under consideration thereby necessitating reopening u/S. 147 of the Act. It is true that the assessee has filed a copy of annual report and audited P & L A/c. and balance sheet along with return of income where various information / material were disclosed. However, the requisite full and true disclosure of all material facts necessary for assessment has not been made as noted above. It is pertinent to mention here that even though the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration. Hence, necessary sanction to issue notice u/S. 148 has been obtained separately from Principal Commissioner of Income Tax as per the provisions of Section 151 of the Act. 4. We have heard the learned counsel for the parties. Undisputedly, the impugned notice dated 26.3.2018 has been issued beyond the period of four years from the end of relevant assessment year i.e 2011-12. The regular assessment was completed under Section 143(3) of the Act. Thus, in view of the clear mandate of the first proviso to Section 147 of the Act, reopening notice on the above facts can only be sustained if there has been a failure on the part of the assessee to truly and fully disclose all material facts necessary for assessment. 5. Bare readin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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