If all true facts necessary for assessment disclosed, notice u/s148 not right.HC

1.  The assessee-club filed instant petition challenging the notice issued under section 148 whereby the assessment for the year 2003-04 was sought to be reopened.

    HC held as under:

2.  On a perusal of the reasons recorded, it was evident that the assessment was sought to be reopened on the basis of material which was on record at the time of original assessment. During the assessment proceedings, the Assessing Officer had enquired into the question regarding the allowability of the entrance fee received by the assessee from its members and on being satisfied allowed the claim. 

3.  Although the Assessing Officer had recorded reasons to the effect that the assessee had failed to disclose fully and truly all material facts, nothing was brought to notice which would suggest that there was any failure on the part of the assessee to disclose fully and truly all material facts. As per the proviso to section 147, the assessment beyond four years from the end of the relevant assessment year can be reopened only if there is failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment. 

4.  In the instant case, in the absence of any failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment, the notice issued under section 148 could not be sustained. 

5.  In view of above, impugned notice issued under section 148 was to be quashed.