State Bank of India v. ACIT & Ors.

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The Tax Publishers2019 TaxPub(DT) 1252 (Bom-HC) : (2019) 418 ITR 0485 : (2019) 310 CTR 0560

INCOME TAX ACT, 1961

Section 147, Proviso

Peerusal of documents which formed part of original assessment proceedings revealed that assessee had furnished all the necessary details before AO as regards amount in question having been shown in profit and loss account but not offered to tax. If AO desired to inquire further into such claim of assessee, nothing prevented him from doing so at the time of framing of original assessment. At any rate, he could not do so in assessment proceedings sought to be commenced beyond period of four years from the end of relevant assessment year in the absence of assessee's failure to disclose fully and truly all material facts.

Reassessment - Notice beyond four years - No failure to disclose fully and truly all material facts -

AO issued notice under section 148 after expirty of four years from the end of relevant assessment year on the ground that assessee bank had credited Rs. 43 crore being outstanding credit entries in draft payable account in terms of directives of RBI however, assessee did not offer the same to tax.Held: Perusal of documents which formed part of original assessment proceedings revealed that assessee had furnished all the necessary details before AO as regards amount in question having been shown in profit and loss acount but not offered to tax. If AO desired to inquire further into such claim of assessee, nothing prevented him from doing so at the time of framing of original assessment. At any rate, he could not do so in assessment proceedings sought to be commenced beyond period of four years from the end of relevant assessment year in the absence of assessee's failure to disclose fully and truly all material facts.

Distinguished:CIT v. T.V. Sundaram Iyengar & Sons. (1996) 222 ITR 344 (SC) : 1996 TaxPub(DT) 1245 (SC), SDF Industrial (P) Ltd. v. Asstt. CIT (2011) 339 ITR 595 (Bom-HC) : 2010 TaxPub(DT) 1921 (Bom-HC), Dr. Amin's Path. Laboratory v. P.N. Prasad (2001) 252 ITR 673 (Bom-HC) : 2001 TaxPub(DT) 1619 (Bom-HC), Honda Siel Power Products Ltd. v. Dy. CIT (2012) 340 ITR 53 (Del-HC) : 2012 TaxPub(DT) 775 (Del-HC), Raymond Woollen Mills Ltd. v. ITO & Ors. (1999) 236 ITR 34 (SC) : 1999 TaxPub(DT) 348 (SC) and Asst. CIT v. Rajesh Jhaveri Stock Brokers (P) Ltd. (2007) 291 ITR 500 (SC) : 2007 TaxPub(DT) 1257 (SC).

REFERRED : Calcutta Discount Co. Ltd. v. ITO (1961) 41 ITR 191 (SC) : 1961 TaxPub(DT) 130 (SC).

FAVOUR : In assessee's favour.

A.Y. : 2011-2012

IN THE BOMBAY HIGH COURT