9911796707
TMI Blog2012 (6) TMI 894X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to as the Act ). Initially, intimation under section 143(1) was issued on 7-11-1996. Subsequently, a revised return came to be submitted on 31-1-1997. The case of the petitioner was taken up for scrutiny assessment, and ultimately, assessment came to be framed under section 143(3) by making certain additions and disallowances against which the petitioner went in appeal to the CIT(A) but did not succeed. The petitioner accepted the said decision and did not prefer any further appeal. Subsequently, the respondent AO issued the impugned notice dated 29-1-2002 under section 148 of the Act, seeking to reopen the assessment of the petitioner for the assessment year 1995-96 which has given rise to the present petition. Mr. R.K. Patel, learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year is bad in law. 2. Opposing the petition, Mr. Sudhir Mehta, learned standing counsel appearing on behalf of the respondent, placed reliance upon the averments made in the affidavit-in-reply filed by the respondent to submit that the petitioner had claimed more deduction under section 80M than it was entitled to and that the AO, without discussing the issue in the assessment order and without looking into the provisions of law, had allowed the deduction. It was submitted that under the provisions of section 80M of the Act, the deduction is allowable only to the extent of 40 per cent of such dividend income and, therefore, the petitioner was entitled to deduction of ₹ 24,02,400 and not to the extent of ₹ 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pening the assessment is that the petitioner had claimed deduction of ₹ 32,55,000 under section 80M of the Act which had been allowed by the then AO though the same was in excess of the allowance of deduction under s. 80M of the Act and as such, income chargeable to tax to the tune of ₹ 8,52,600 has escaped assessment. In the reasons recorded, the AO had also observed that he has reason to believe that such escapement is on account of failure on the part of the assessee to furnish full and true particulars of income. What is required to be now examined is as to whether the conditions precedent necessary for assumption of jurisdiction by the AO, under section 147 of the Act beyond a period of four years from the end of the releva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no failure on the part of the petitioner to disclose fully and truly all material facts and that the assessment is sought to be reopened on the ground that the earlier AO had made an error while framing the original assessment. Therefore, by merely adding a line in the reasons recorded that the petitioner had failed to disclose fully and truly all material facts the requirement of the proviso to section 147 of the Act would not be satisfied. When the AO alleges that there is failure to disclose fully and truly all material facts, he should also be in a position to demonstrate as to what is the failure on the part of the assessee. Merely putting in a line as aforesaid would not satisfy the requirements of the proviso to section 147 of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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