Law:

Section:

Section 147 of the Income-tax Act, 1961 - Income escaping assessment - Non-disclosure of primary facts - Assessment year 1982-83 - Whether power to re-open concluded assessment by taking recourse to twin provisions namely sections 147 and 148 cannot be challenged by an assessee except on very limited grounds known to law - Held, yes - Whether where assessee failed to make full disclosure of his income and authorities were not satisfied with explanation offered by assessee, notice issued against assessee under section 148 and consequent reassessment proceedings would be valid in law - Held, yes FACTS Certain cash was seized from the assessee. As the assessee had not made full disclosure said cash in his returns the Assessing Officer after issuing notice under section 147/148 reopened the assessments for the assessment year 1982-83. The assessee requested for the supply of the reasons for reopening the assessment and submitted that the said sum was accumulated income of the assessment years 1975-76 to 1982-83 and, therefore, same should not be added to his income again. The Assessing Officer did not find the explanation satisfactory and assessed the cash in question in the hands of assessee in his individual capacity. The Tribunal upheld the notice and in consequence the reassessment proceedings. On appeal : HELD The instant case was a case where true disclosure of assets/income was not made by the assessee and hence, notice could be issued. Reasons were shown to the assessee and he replied. Those facts were not in disputes. [Para 7] In those circumstances, the authorities were justified, once they recorded their dissatisfaction to the explanation offered by the assessee, in upholding the notice and reassessment. Indeed, power to re-open the concluded assessment by taking recourse to twin provisions namely sections 147 and 148 cannot be challenged by an assessee except on very limited grounds known to law. None of those grounds could be noticed so as to hold in favour of the assessee. [Para 8] Therefore, the findings of the Tribunal were sustained and appeal was to be dismissed. CASES REFERRED TO CIT v. Rao Thakur Narayan Singh [1965] 56 ITR 234 (SC) [Para 9],…

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