Case Law Details
HLG Memorial Hospital Pvt. Ltd. Vs ACIT (ITAT Kolkata)
In the reasons supplied to the petitioner, there is no whisper, what to speak of any allegation, that the petitioner had failed to disclose fully and truly all material facts necessary for assessment and that because of this failure there has been an escapement of income chargeable to tax. Merely having a reason to believe that income had escaped assessment, is not sufficient to reopen assessments beyond the four year period indicated above. The escapement of income from assessment must also be occasioned by the failure on the part of the assessee to disclose material facts, fully and truly. This is a necessary condition for overcoming the bar set up by the proviso to section 147. If this condition is not satisfied, the bar would operate and no action under section 147 could be taken.
In the absence of an allegation in the reasons recorded that the escapement of income had occurred by reason of failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment, any action taken by the Assessing officer under section 147 beyond the four year period would be wholly without jurisdiction.
ITAT quashed the reopening as bad in law as it does not fulfil the requirements of the proviso to Section 147 of the Act, as there is no whisper that the assessee has failed to fully and truly disclose all material facts necessary for assessment and as no tangible material has come to the possession of the Assessing Officer.
FULL TEXT OF THE ITAT JUDGEMENT
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