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Additional Commissioner Of Income-Tax ... vs Surat Art Silk Cloth Manufacturers ... on 19 November, 1979

The ITO then took up the matter in appeals before the Tribunal. These appeals have been decided by the Delhi Bench B, Delhi, by its consolidated order dated April 7, 1982. The Tribunal has confirmed the view taken by the AAC and in doing so has rightly relied upon the decision of the Supreme Court in Addl. CIT v. Surat Art Silk Cloth Manufacturers Association [1980] 121 ITR 1. It would be seen that there could be escapement of assessment under Clause (a) of Section 147 by reason of the omission or failure on the part of the assessee to make a return under Section 139 or to disclose fully and truly all material facts necessary for his assessment for that year. This clause would not apply to the present case because the assessee being under no statutory obligation to file a return for the assessment year under consideration, it cannot be said that income chargeable to tax has escaped assessment by reason of its omission or failure to file the return. The same is the case with regard to the other condition because the assessee had been granted a certificate of exemption. Thus, there could be no omission or failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment for this year.
Supreme Court of India Cites 45 - Cited by 2322 - P N Bhagwati - Full Document
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