If there is no failure or omission on the part of the assessee to disclose material facts reassessment procedding cannot be initiated

RRB Consultants And Engineers Pvt Ltd. Vs. DCIT ( Delhi HC) – In the present case, the assessee has not failed or omitted to disclose material facts either deliberately or intentionally. On the other hand, full and true information and details were furnished and given during the course of the original assessment proceedings. The relevant and germane facts were truly and fully disclosed. As per the case of the Revenue, the Assessing Officer made an error of judgement and did not form a proper legal opinion. A wrong legal inference was drawn from the facts stated by the assessee and on record. Once primary facts have been disclosed then, it is for the Assessing Officer to draw proper legal conclusion and apply the provisions of the statute. In the present case, it is not alleged that any fact or factual detail was embedded in the evidence/books of accounts which the Assessing Officer could have uncovered but had failed to do so. The letter written by the assessee dated 10^th January, 2006, spelt out and in categorical terms had stated truly and fully the material facts. Nothing remained to be discovered or unearthed. This being the position the jurisdiction pre-conditions required for reopening of the assessment order are not satisfied in the present case.

HIGH COURT OF DELHI

Date of decision: December 08, 2011

W.P.(C) 73 13/2010

RRB Consultants And Engineers Pvt Ltd.

Versus

Deputy Commissioner Of Income Tax

ORDER

SANJIV KHANNA,J: (ORAL)

RRB Consultants and Engineers Pvt. Ltd. now known as Eco RRB Infra (P) Ltd. has filed the present writ petition for issue of writ of certiorari for quashing of notice dated 26.3.2010 issued by Deputy Commissioner of Income Tax, the respondent herein, under Section 148 of the Income Tax Act, 1961 (Act, for short). The petitioner has also prayed for quashing of order dated 28.9.2010 passed by the respondent dismissing their objections to the re-opening of assessment under Section 147/148 of the Act.