The Tax Publishers2020 TaxPub(DT) 1265 (Kol-Trib)

INCOME TAX ACT, 1961

Section 147 proviso

Since escapement of income chargeable to tax for the year under consideration was by reason of failure on part of assessee, reopening of assessment by AO after expiry of four years from the end of relevant assessment year under consideration was in accordance with relevant provisions of the Act including first proviso to section 147 ,accordingly, reopening was valid.

Reassessment - Beyond four years - Assessee failed to disclose fully and truly material facts -

AO reopened assessment after expiry of four years from the end of relevant assessment year information received by him in the form of report of Justice M.B. Shah Commission on illegal mining and suppressed sales. Assessee challenged this on the ground that assesse had furnished details as requisitioned by AO and as such there was no failure on part of assessee to disclose truly & fully all facts necessary for assessment. Held: A perusal of reasons recorded by AO showed that information in the form of report of Justice M.B. Shah Commission on illegal mining was received by him giving actual production of iron ore by assessee-firm. From said information, it was gathered by AO that assesse had suppressed its actual production of iron ore for the year under consideration to the tune of 10,761 MT valued at Rs. 2,79,29,422. It was thus clear that factum as well as quantum of suppression of production of iron ore was noticed by AO from information received by him in the form of report of Justice M.B. Shah Commission on illegal mining and keeping in view that production of iron ore to that extent had remained undisclosed by assessee in its books of account, a belief was found by AO that income of assessee had escaped assessment and assessment was reopened by him after recording the reasons.Failure on part of assessee to disclose fully and truly the actual quantity of production of iron ore, which was a material fact necessary for its assessment for the year under consideration thus was clearly pointed out by AO in the reasons recorded and since escapement of income chargeable to tax for the year under consideration was by reason of such failure on part of assessee, reopening of assessment by AO after expiry of four years from the end of relevant assessment year under consideration was in accordance with relevant provisions of the Act including first proviso to section 147.

REFERRED :

FAVOUR : Against the assessee

A.Y. :

INCOME TAX ACT, 1961

Section 143(3), 147

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