9911796707
TMI Blog2021 (4) TMI 1226X X X X Extracts X X X X X X X X Extracts X X X X ..... metals. The petitioner company filed its return of income on 30.09.2008, declaring a total income of Rs. 117,55,95,560/- and the said return was processed and intimation under Section 143(1) was issued from the respondents. The case of the petitioner was selected for scrutiny and notice under Section 143(2) was issued to the petitioner on 23.09.2009. In the said intimation notice, it was stated that income tax computed at higher rate against the actual rate and actual rate, and credit for tax deducted at source was given only to the extent of Rs. 8,51,06,508/- as against the actual TDS of Rs. 9,04,19,747/-, which was claimed by the petitioner. The petitioner on 05.04.2010, had filed a rectification application before the 2nd respondent to rectify the same. The 2nd respondent passed an order under Section 154 of the Income Tax Act on 28.12.2010 and a revised demand was issued to the petitioner, reducing the total demand to the tune of Rs. 38,05,14,782/-, Subsequently, the Department passed an order under Section 143(3), wherein again TDS was given only to the extent of Rs. 8,51,06,508/-. On 20.07.2011, the petitioner filed another rectification petition before the Learned Deputy Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Accounting System), which reflects the correct TDS available to the petitioner at the given point of time. The assessment under Section 143(3) was completed on 31.12.2010. The notice under Section 148 was issued on 20.02.2015 in accordance with the provisions of Section 147 of the Income Tax Act. Regarding the delay for furnishing the reasons are concerned, the movement of records from the transferor officers to the transferee officers was the reason for the delay in furnishing of reasons by the Department. The respondents contended that the powers given to the Assessing Officer under the amended provisions of Section 147 with effect from 01.04.1989 are wide. Therefore, in the event of any reason to believe that income has escaped assessment, it is enough to confer jurisdiction to reopen the assessment. The Amended Section provides that the Assessing officer may assess, or reassess such income (believed to have escaped assessment) and also any other income chargeable to tax, which has escaped assessment and which comes to the notice of the Assessing Officer. Subsequently in the course of the proceedings under Section 147 of the Act. Explanations 1 to 3rd proviso is abundantly clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner filed the rectification application and form 26AS was downloaded by the Assessing Officer. Thus, there is failure on the part of the assessee to disclose fully and truly all the materials before the Assessing Officer and the reopening of the assessment is in order. As the assessee has not made full and true disclosure during the assessment proceedings under Section 143(3), the reassessment can be initiated after the expiry of 4 years from the end of the relevant assessment year. The assessment is reopened in the case of the petitioner for this assessment year, after getting the prior approval of the Commissioner of Income Tax, Salem as per the relevant provisions. 8. The respondents relied in comparison with Form 26AS and the rectification application filed by the petitioner on 20.07.2011, found that there is a huge mismatch in receipts appearing in 26AS vis-a-vis receipts credited in P & L Account. Thus, the Assessing Officer had tangible material to reopen the income tax assessment and the same was legally done as per the provisions of Section 147 of the Income Tax Act by issuing a notice under Section 148 of the Income Tax Act. 9. Further, the Assessing officer came into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 to 2009-10. It is reported that the State Government of Odisha, issued show cause notices to various parties for recovery of mineral value. KJS Ahulwalia, one of the lessee, who employed assesee as raising contractor, has been issued for recovery of Rs. 2022,00,72,213/- for the above said period. The notice has been issued for excess production which was produced illegally and not disclosed to appropriate authorities. With reference to the said allegations of the Department, the learned Senior counsel made a submission that regarding the illegal mining activity in the State of Odisha, the petitioner is unconnected and he was a raising contractor and in respect of his business transactions, he made full and true disclosure. Thus, the petitioner is no way connected with the illegal mining and as a raising contractor, he has performed his job and submitted the materials, which all are true and full for the purpose of assessment. Thus, the impugned order is liable to be scrapped. 14. The learned Senior counsel mainly raised objections regarding the alleged mismatch with reference to the discrepancies identified for forming an opinion in the matter of escaped income. Mere reference m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income. Thus, the Assessing officer disposed off the objections of the petitioner against the reopening of the assessment under Section 147 of the Income Tax Act, after carefully considering the merits of these factors. The said belief has been formed by the Assessing Officer on the income chargeable to tax had been escaped assessment based on the information, which came to light during the process of Section 154 rectification filed by the petitioner. Thus, there is a valid reason for the purpose of reopening of assessment and the informations provided and evidences produced by the petitioner / assessee, cannot be construed as full and true and therefore, the petitioner has to co-operate for the reassessment proceedings for the Assessment Year 2008-09, enabling the authorities to adjudicate and pass reassessment orders. 17. Considering the arguments, this Court is of the considered opinion that the scope of Section 147 of the Income Tax Act are unambiguous. Reopening of Assessment under Section 147 within four years and beyond four years, but within 6 years are well enumerated in the provision itself. Thus, the case of the petitioner falls under the category of beyond four years, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Credited Amount of TDS 1 Tata Steel Limited 127089680 2879852 16678156 377927 2 Topworth Steel Private 18047097 408948 Nil 3 Rajesh Jaiswal & Co 4472001 101336 Nil 4 Rashmi Cement Limited 16852646 381391 Nil 5 Shree Virangana Steels 5818292 131843 Nil 6 Sunflag Iron & Steel Ltd 5102596 105113 Nil 7 Tata Sponge Iron Limited 722341 16369 Nil Total 17,81,04,653 40,24,852 20. In the case of Jayaram Paper Mills Limited, Vs. Commissioner of Income Tax, reported in [2010] 191 Taxman 38 (Madras), it is held as follows: "6. It is now well settled that the term "escaped assessment" includes both non-assessment and under assessment. (see Tax Officer-cum-Regional Transport Officer vs. Durg Transport Company (Pvt) Ltd --1975 (4) SCC 43 and CIT vs. Sun Engineering Works (P) Ltd- 1992(4) SCC 363). In a long line of decisions, the Supreme Court has held that this court, under Article 226 of the Constitution, has power to set aside a notice under section 147 of the Income Tax Act, 1961, if the conditions precedent for the exercise of the jurisdiction do not exist." 21. Thus, it is sufficient if there are certain additional materials available, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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