Law:

Section:

Section 147 of the Income-tax Act, 1961 - Income escaping assessment - Non-disclosure of primary facts - Assessment year 1994-95 - Assessee was engaged in financing and trading in shares - On amalgamation of a company during relevant previous year, assessee-company was allotted shares of amalgamated company in lieu of its holdings in amalgamating company - These shares were later sold - Assessee claimed capital loss on these shares by taking cost of acquisition at market rate of these shares as on 31-3-1988 - That was accepted by Assessing Officer - Assessee had not disclosed at that time 6-4-1987 as date of acquisition of shares in amalgamating company and, therefore, Assessing Officer could not invoke provisions of section 49(2) - Whether Assessing Officer could form a belief that by not disclosing 6-4-1987, as date of acqu- isition of shares in amalgamating company and by showing 1989-90 as year of acquisition of shareholding in question, assessee had failed to make a true and full disclosure of all material facts necessary for his assessment during concluded assessment proceedings for assessment year 1994-95 - Held, yes CASES REFERRED TO Calcutta Discount Co. Ltd. v. ITO [1961] 41 ITR 191 (SC) [para 8], Phool Chand Bajrang Lal v. ITO [1993] 203 ITR 456/ 69 Taxman 627 (SC) [para 16] and A.M. Allison v. B.L. Sen AIR 1957 SC 227 [para 22]. J.P. Shah for the Applicant. Mihir Joshi and Manish R. Bhatt for the Respondent. JUDGMENT M.S. Shah, J. - In this petition under article 226 of the Constitution, the petitioner-company, which is engaged in the business of financing and trading in shares, has challenged the notice dated May 28, 2001 (Annexure A), issued by the Additional Commissioner of Income-tax, Special Range-1, Surat, under section 148 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), stating that the said officer had reason to believe that the income chargeable to tax for the assessment year 1994-95 has escaped assessment within the meaning of section 147 of the Act and, therefore, the petitioner has been called upon to file a return of the petitioner's income for the said assessment year. The notice further states that the same has…

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