Law:

Section:

Section 147(a) of the income-tax Act, 1961-Reassessment-Non-disclosure of primary facts-Whether assessee could be said to have disclosed fully and truly all primary facts, if facts stated or disclosed by him during regular assessment are either found to be bogus or non-existent subsequently-Held, no Facts The petitioner-firm filed its return of income accompanied by statement of accounts, copies of personal accounts of the partners, details of sales, interest paid and discount account. Subsequently, the petitioner filed copy of cash credits and squared up accounts along with the confirmatory letters from the creditors showing specifically the districts in which those creditors were being assessed. After exercising necessary checks on these documents, the ITO completed the assessment. Later on, the ITO reopened the assessment under section 147(a) on the ground that the parties in whose names cash credits appeared in the assessee's books were established to be bogus hundi and hawala dealers, based on a classified information received from the excise authorities. On writ: Held It is no doubt true that in cases where the correctness or the genuineness of the facts established on record is not in dispute, the ITO cannot proceed into the matter merely on the ground that he wants to draw a different inference or meaning from the set of facts established than what had been drawn by him at the time of the initial assessment. But in a case where the facts stated or disclosed by the assessee are either found to be bogus or non-existent, he cannot forestall the reassessment on the plea that he had fully and truly disclosed all the material facts. There cannot be any truthfulness about a fact or a material fact which to the knowledge of the assessee was non-existent or not there at all. Having regard to the facts and circumstances of the case, it appeared that it was a case where the facts alleged by the assessee to be true or correct were found to be non-existent. Accordingly, the reopening of the assessment under section 147(a) was valid. Case review Kirpa Ram Ramji Dass v. ITO [1982] 135 ITR 68 (Punj. & Har.) followed. Cases referred to Kirpa Ram Ramji Dass v. ITO…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492