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| DATE: | July 7, 2014 (Date of publication) |
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| Click here to download the judgement (BSE_147_reasons.pdf) |
S. 147: Bald statement that assessee has failed to make a full & true disclosure of material facts not sufficient. Details must be given as to which fact was not disclosed
It is true that the reasons for initiating re-assessment proceedings do in fact state that there was a failure on the part of the Petitioner to disclose fully and truly all material facts necessary for its assessment. However, merely making this bald assertion was not enough. In Hindustan Lever Ltd. v/s R.B. Wadkar 268 ITR 332 it was held that the AO must disclose in the reasons as to which fact or material was not disclosed by the assessee fully and truly necessary for assessment of that assessment year, so as to establish the vital link between the reasons and evidence. On facts, there are no details given by the AO as to which fact or material was not disclosed by the Petitioner that led to it’s income escaping assessment. There is merely a bald assertion in the reasons that there was a failure on the part of the Petitioner to disclose fully and truly all material facts without giving any details thereof. This being the case, the impugned notice is bad in law and on this ground alone the Petitioner is entitled to succeed in this Writ Petition.
It is a fact that the reason for issue of notice u/s 148 are being disclosed/furnished by the Assessing Officer after complying with the notice u/s 148 either by filing a fresh return or by claiming that the earlier ROI may be treated as in response to notice u/s 148. If later course is adopted and after wards reasons for issue of notice u/s 148 are requested and received, whether it is open to the assesse to file a fresh return on receipt of reasons. What will be the consequences if such course is preferred.