WINSOME TEXTILES INDUSTRIES LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) 1961 (for short "the Act"), by which proceedings under s. 147 of the Act have been initiated to reassess the income for the asst. yr. 1997 -98 which is alleged to have escaped assessment.

(2.) THE income was determined under s. 143(3) at Rs. 2,59,86,033 before allowing set off (of) unabsorbed depreciation at Rs. 99,70,510. The assessed income after set off of unabsorbed depreciation is Rs. 1,61,15,530. The assessment was rectified under s. 154 wherein the brought forward depreciation (after giving appeal effect for the asst. yr. 1996 -97) of Rs. 1,72,55,633 was allowed to be set off and the balance taxable income remained at Rs. 87,32,400. The assessee went in appeal before the CIT(A) who deleted all the additions except the addition of Rs. 35,000 on account of estimated leave encashment. The income determined after appeal effect of the order of the CIT(A) was loss Rs. ( -) 1,06,06,159 that pertained to depreciation.

(3.) ON close scrutiny of the record, it is believed that income chargeable to tax has escaped assessment within the meaning of s. 147. It is also found that the assessee has not disclosed fully and truly all material facts necessary for his assessment for the asst. yr. 1997 -98.