INCOME TAX ACT, 1961

Section 148

Reassessment - Notice beyond four years - Failure to disclose fully and truly all material facts -

AO issued notice under section 148 after expiry of four years from the end of relevant assessment year so as to tax undisclosed cash deposits in bank account. Assessee challenged the notice by way of writ petition taking plea of proviso to section 147. Held: AO after receiving information from NMS had verified the documents and explanation offered by assessee and based on the outcome of verification, drew the inference that transactions of cash deposit were not shown in the return of income for the year under consideration and noted that the true facts of transactions having not been disclosed by the assessee and income having escaped assessment. Although it was case of assessee that cash deposit was from opening cash balance, yet upon verification of submission filed by assessee, AO noticed that there was no supporting evidence as regards the source of income. Thus, assessee failed to explain source of cash deposit and notice issued under section 147 was not hit by proviso to section 147.

Relied:Calcutta Discount Co. Ltd. v. ITO (1961) 41 ITR 191 (SC) : 1961 TaxPub(DT) 0130 (SC), S. Narayanappa v. CIT (1967) 63 ITR 219 (SC) : 1967 TaxPub(DT) 0198 (SC) and Asstt. CIT v. Rajesh Jhaveri Stock Broker Ltd. (2007) 291 ITR 500 (SC) : 2007 TaxPub(DT) 1257 (SC)

REFERRED :

FAVOUR : against the assessee.

A.Y. : 2012-13

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