Reopening Assessment Under Section 147 and Disallowance Under Section 37(1) Rejected Where Mining Operations Properly Reported

The HC dismissed the Revenue's appeal challenging the reopening of assessment under s.147 and disallowance under Explanation 1 to s.37(1). The Tribunal had found that the assessee correctly reported iron ore production figures in Form H-1 submitted to Indian Bureau of Mines and in Form 3CD. The Court found no perversity in this concurrent finding of fact. Regarding the allegation of illegal mining operations without environmental clearance based on Justice M.B. Shah Commission's report, the HC noted that the Central Empowered Committee had opined that mining without clearance does not constitute illegal mining. The Court held that Explanation 1 to s.37(1) would only apply if the activity were declared illegal, penalty imposed, and claimed as expenditure by the assessee. .....

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