On basis of subsequent info received by AO, proceedings u/s 147 (of Income Tax Act, 1961) held justified.
On basis of subsequent info received by AO, proceedings u/s 147 (of Income Tax Act, 1961) held justified.
Tribunal quashed proceeding u/s 147 (of Income Tax Act, 1961) due to non-mentioning of reason that there was failure on part of assessee to disclose all material facts fully & truly necessary for assessment. On appeal HC held, immaterial, If ITO in original assessment found genuineness of transaction or not. If later info. satisfy that assessee had not made full & true disclosure of material facts during original assessment. Concluded, taxable income escaped assessment.-000049
Facts in Brief:
1. Tribunal quashed the initiation of proceeding under section 147 (of Income Tax Act, 1961) on the ground that the notices were issued beyond four years without mentioning in the reason recorded by the assessing authority that there was failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment, as such the notice under section 148 (of Income Tax Act, 1961) is not valid.
On appeal HC held as under:
2. It would be immaterial whether the Income-tax Officer at the time of making the original assessment could or, could not have found by further enquiry or investigation, whether the transaction was genuine or not, if on the basis of subsequent information, the Income-tax Officer arrives at a conclusion, after satisfying the twin conditions prescribed in Section 147(a) (of Income Tax Act, 1961), that the assessee had not made a full and true disclosure of the material facts at the time of original assessment and therefore income chargeable to tax had escaped assessment.
3. Thus, Tribunal was justified in holding that the initiation of proceedings under Section 148 (of Income Tax Act, 1961) was barred by limitation.
Case Reference-Commissioner of Income-tax- II, Kanpur v. Mirza International Ltd
HIGH COURT OF ALLAHABAD
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