Law:

Section:

Income-tax---Reassessment--Escapement of income--Obligation of assessee to disclose facts--Extent--Omission of assessee to make a true and full disclosure--Consequences--Whether there has been such non-disclosure of primary facts which has caused escapement of income in the assessment, basically a question of fact. The obligation of the assessee is to disclose only primary facts and not inferential facts. There must be, therefore, (a) full disclosure, and (b) true disclosure of all material facts. What facts are material for a particular case would depend upon the facts an circumstances of each case and (c) there must be escapement of tax or under-assessment due to such failure or omission. Mere production of evidence before the Income-tax Officer was not enough, that there may be omission or failure to make a true and full disclosure, if some material for the assessment lay embedded in the evidence which the Revenue could have uncovered but did not, then it is the duty of the assessee to bring it to the notice of the assessing authority. The assessee knows all the material and relevant facts the assessing authority might not. In respect of the failure to disclose, the omission to disclose may be deliberate or inadvertent. That was immaterial. But if there is omission to disclose material facts, then, subject to the other conditions, jurisdiction to reopen is attracted. If there are some primary facts from which a reasonable belief could be formed that there was some non-disclosure or failure to disclose fully and truly all material facts, the Income-tax Officer has jurisdiction to reopen .the assessment. Whether there has been such non-disclosure of primary facts, which has caused escapement of income in the assessment was basically a question of fact. Calcutta Discount Co. Ltd. v. I.T.O. (1961) 41 I T R 191 (SC) = (1961) 3 Tax 124 (SC); Kantamani Venkata Narayana & Sons v. First I.T.O. (1967) 63 I T R 638 (SC); I.T.O. v. Lakhmani Mewal Das (1976) 103 I T R 437 (SC) = (1977) 35 Tax 149 (SC); Calcutta Discount Co.s case (1961) 41 I T R 191 (SC) and Malegaon Electricity Co. P. Ltd. v. C. I. T. (1970) 78 1 T R 466 (SC) ref. JUDGMENT SABYASACHI MUKHARJI,…

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