DHFL Venture Capital Fund v. ITO

Sri.John Mathew N, Alappuzha vs. The ITO, WD-2, Alappuzha

In the result, the appeal by the assessee is dismissed

Bench: Shri Sanjay Arora & Shri Sandeep Gosainshri John Mathew N. The Income Tax Officer Neroth House Ward - 2, Alleppey Vs. No. 1, Jubilee Road Alappuzha [Pan: Acupm8885D] Appellant Respondent Appellant By: Shri Anil D. Nair & Shri P.K. Biju, Advocates Respondent By: Smt. J.M. Jamuna Devi, Sr. D.R. Date Of Hearing: 03.02.2023 Date Of Pronouncement: 24.02.2023 O R D E R Per Bench This Appeal By The Assessee Challenges The Validity Of The Reassessment Under Section 147 Read With Section 143(3) Of The Income Tax Act, 1961 (‘The Act’ Hereinafter) Dated 20.11.2007 For Assessment Year (Ay) 2001-02, Since Upheld In First Appeal Vide Order Dated 24.01.2018 By The Commissioner Of Income Tax (Appeals), Kottayam (‘Cit(A)’ For Short). 2.1 At The Outset, Shri Anil D. Nair, The Ld. Counsel For The Assessee-Appellant, Would Submit That The Basis Of The Assessee’S Challenge Is Two-Fold: (A) Non-Supply Of The Reasons Recorded; & (B) True & Full Disclosure Of All Material Facts Relating To The Income Escaping Assessment By The Assessee Per His Return Of Income.

…nge to the two areas afore-stated (see para 2.1). The appeal in fact involves, he would continue, another legal issue in view of the decisions in the case of Sagar Enterprises vs. Asst. CIT [2002] 257 ITR 335 (Guj) and DHFL Venture Capital Fund vs. ITO [2013] 358 ITR 471 (Bom). In both these decisions it stands clarified that reassessment under the Act cannot be contingent on the happening of a future event, or a hypothesis. It only relates to the income that has already escaped assessment, i.e., an event that has already taken place, which cannot thus depend on the happening or otherwise of a future event, or to…