Law:

Section:

Section 147 of the Income-tax Act, 1961 - Income escaping assessment - Assessment years 1990-91 to 1992-93 - Where only activity undertaken by assessee in India related to maintenance and service of a super computer, which was sold by assessee to Government of India and nature and character of maintenance and service charges received by assessee from Government were within knowledge of Assessing Officer, assessment could not be reopened merely on ground that agreement entered into between assessee and Government was not filed before Assessing Officer [In favour of assessee] The assessee-company was deriving income from maintenance and service charges from the Department of Science and Technology, related to maintenance and service of a super computer, which was sold by the assessee to the Government of India under an agreement. The Assessing Officer completed regular assessment for all three years after verfication. Thereafter, he initiated reassessment proceedings on the ground that the agreement entered into between the assessee and Government was not filed before him. The Tribunal set aside the reassessment proceedings on the ground that there was no failure or omission on the part of the assessee to disclose fully and truly all material facts. Held that as far as the assessment year 1992-93 was concerned, it was not disputed that a copy of the agreement was filed with the Assessing Officer. Copy of the said agreement was also available in the assessment records of the said year. The contention raised by the revenue for the said assessment year did not have any merit and had to be rejected. So far as assessment years 1990-91 and 1991-92 were concerned, only activity undertaken by the assessee in India related to maintenance and service of a super computer, which was sold by the assessee to the Government of India. The assessee had received service charges and maintenance charges in respect of the same and had incurred expenditure. That being the only activity, which was undertaken by the assessee in India, it was difficult to perceive and accept the contention of the revenue that the nature and character of the maintenance and service charges paid and…

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