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Section 147 of the Income-tax Act, 1961 - Income escaping assessment - General - Assessment year 1992-93 [In favour of assessee] For the assessment year 1992-93, the case of the assessee was selected for scrutiny assessment and assessment was framed under section 143(3). Subsequently, a notice dated 12-1-2001 under section 148 was served upon the assessee seeking to reopen the assessment for the assessment year 1992-93. The assessee contended that there was no failure on its part to disclose fully and truly all material facts necessary for its assessment for the assessment year in question and, as such, the impugned notice was without jurisdiction. Held that the sole basis for reopening the assessment was the subsequent decision of the instant High Court in the case of Gujarat State Co-operative Bank Ltd. v. CIT [2001] 250 ITR 229(Guj.). In the circumstances, the facts of the instant case would stand squarely covered by the decision of the instant Court in the case of CIT v. Bipin Vadilal [1999] 238 ITR 1022 (Guj.) inasmuch as the belief as to escapement of income chargeable to tax from assessment was not entertained by the Assessing Officer on the ground that there had been failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment and no proceedings could have been initiated under section 148 after expiry of a period of four years from the end of the relevant assessment year. In the circumstances, the initiation of reassessment proceedings in the case of the assessee for the assessment year under consideration was clearly barred by limitation and, as such, the assumption of jurisdiction by the Assessing Officer itself was invalid. The impugned notice under section 148, therefore, could not be sustained. CASE REVIEW CIT v. Bipin Vadilal [1999] 238 ITR 1022 (Guj.) followed. CASES REFERRED TO CIT v. Bipin Vadilal [1999] 238 ITR 1022 (Guj.), CIT v. Karnataka State Co-operative Apex Bank[2001] 251 ITR 194 (SC), Gujarat State Co-operative Bank Ltd. v. CIT [2001] 250 ITR 229 (Guj.) and Madhya Pradesh Co-operative Bank Ltd. v. Addl. CIT [1996] 218 ITR 438 (SC). S.N. Soparkar for the Petitioner. M.R. Bhatt and Mrs.…

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