LAW FOR ALL

Whether the notice under Sec.147 [1] issued to the assessee shows sufficient reasons to believe on the part of the assessing officer to reopen the assessment ? No -since the revenue has failed to show non­disclosure of facts the notice having been issued after a period of 4 years is required to be quashed. Whether the subsequent facts which come to the knowledge of the assessing officer can be taken into account to decide whether the assessment proceedings should be re­opened or not. ? Yes - the Information which comes to the notice of the assessing officer during proceedings for subsequent assessment years can definitely form tangible material to invoke powers vested with the assessing officer under Section 147 of the Act. whether the revenue can take the benefit of theextended period of limitation of 6 years for initiating proceedings under the first proviso Section 147 of the Act. Held that This can only be done if the revenue can show that the assessee had failed to disclose fully and truly all material facts necessary for its assessment. The assessee, in our view had disclosed all the factsit was bound to disclose. If the revenue wanted to investigate the matter further at that stage it could have easily directed the assessee to furnish more facts. Whether the disclosure of secondary facts is not necessary. No- it is the duty of the assessee to disclose full and truly all material facts which it termed as primary facts. Nondisclosure of other facts which may be termed as secondary facts is not necessary. Whether the notice issued to the assessee shows sufficient reasons to believe on the part of the assessing officer to reopen the assessment ? No since the revenue has failed to show non­disclosure of facts the notice having been issued after a period of 4 years is required to be quashed. whether on facts of this case the revenue could take benefit of the second proviso or not.? but the revenue may issue fresh notice taking benefit of the second proviso extended limitation of 6 years, if otherwise permissible under law.