Law: Income Tax Act, 1961

Section: 80,80-1,147,148,149

Income-tax--Reassessment---Notice---Failure to disclose material facts necessary for assessment---Primary facts necessary for claiming special deduction not disclosed at time of original- assessment for years 1983-84 to 1988-89 excluding 1984-85---Material facts disclosed only during assessment proceedings for 1989-90---Notice for reassessment was valid---Indian Income Tax Act, 1961, Ss.80-1, 147 & 148. Section 147 of the Income Tax Act, 1961, deals with the income escaping assessment. Before a notice under section 148 of the Act can be issued, all further requirements of section 147 of the Act must be fully met. The time limit specified in section 149 of the Act is not a substitute for what has been stated in section. 147 of the Act. Section 149 of the Act merely stipulates the time limits within which action can be taken under section 147 of the Act and a notice issued under section 148 of the Act. In other words, where a notice issued under section 148 of the Act is after the expiry of a period of four years after the end of the relevant assessment year, the conditions set out in the proviso to section 1-47 of the Act must be satisfied. Such a notice also should conform to the time limits and the monetary limits set .out in section 149 of the Act. There is no option given to the Assessing Officer to comply with either section 149 of the Act or the proviso to section 147 of the Act. Both of them are to be simultaneously complied with and the requirements therein are to be fulfilled before a valid notice can be issued under section 148. The duty that is cast upon the assessee is to disclose the primary facts on the basis of which the Assessing Officer can decide as to whether the assessee is entitled to the deduction claimed or not. The mere fact that the Income-tax Officer had reached some conclusions and had allowed the deduction does not necessarily imply that the Income-tax Officer had been provided with the primary facts required for making a decision as to whether the deduction claimed was allowable in terms of the relevant statutory provisions: Held, that, in the instant case, the assessment orders for the years 1983-84 to 1988-89 excluding 1984-85…

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