Law:

Section:

Section 147 of the Income-tax Act, 1961 - Income escaping assessment - General - Assessment years 2003-04 and 2004-05 - Where assessments were sought to be reopened on ground that as per Explanation given below sub-section (13) of section 80-IA, which had been substituted by Finance (No. 2) Act, 2009 with retrospective effect from 1-4-2000, deduction under section 80-IA would not be admissible to an assessee who carried on business which was in nature of works contract and, therefore, notices were issued under section 148 beyond period of four years from end of relevant assessment years but notices were totally silent as regards any failure on part of petitioner to disclose fully and truly all material facts necessary for its assessment for relevant assessment years, in view of first proviso to section 147 notices were not valid [In favour of assessee] The assessee was a works contractor for the assessment years in question notices were issued under section 148 beyond the period of four years from the end of the relevant assessment years. From the reasons recorded it was apparent that the assessments were sought to be reopened on the ground that as per the Explanation given below sub-section (13) of section 80-IA, which had been substituted by the Finance (No. 2) Act, 2009 with retrospective effect from 1-4-2000, deduction under section 80-IA would not be admissible to an assessee who carried on business which was in the nature of works contract. However, the notices were totally silent as regards any failure on the part of the petitioner to disclose fully and truly all material facts necessary for its assessment for the relevant assessment years. Held that as laid down in first proviso to section 147, for the purpose of invoking section 147 after the expiry of four years from the end of the relevant assessment year, the income chargeable to tax should have escaped assessment by reason of failure on the part of the assessee either (i) to make a return under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148, or (ii) to disclose fully and truly all material facts necessary for his assessment. In the facts of the…

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