COMMISSIONER OF INCOME TAX Vs. TATA CERAMICS LTD

JUDGEMENT

(1.) The question of law raised in the above appeal is re-framed as follows:

(2.) The assessment year is 1994-95; for which regular assessment was completed as per Annexure-A1 dated 03.01.1997. Later, after four years, as stipulated in the first proviso to Section 147 of the Income Tax Act, 1961, proceedings for re-assessment were taken on grounds of escapement of income alleging non-disclosure of full and true material facts necessary for assessment; within six years. The Assessing Officer included the interest income of Rs.34, 51, 954/-, which was not earlier returned, to carry out a re-assessment as is seen from Annexure-A.

(3.) The learned Senior Counsel appearing for the Revenue would contend that the interest income which was taxed on re-assessment was never disclosed by the assessee. The assessee had filed a return of income for the subject assessment year disclosing a total income of Rs.3, 14, 050/-. What was so disclosed was also interest income, since the assessee had not commenced production in the subject year. Only later, the interest income amounting to almost Rs.38, 35, 504/- was revealed, which was not returned. It was hence a notice was issued under Section 148 for re-assessment on the allegation of non-disclosure of full and true material facts.