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“full and true disclosure”

ReassessmentSection 147Section 147449 judgments

The decision most relied on for full and true disclosure is CIT v. Kelvinator of India Ltd. (256 ITR 1), cited in 439 judgments on BharatTax.

Leading authorities on full and true disclosure

CIT v. Kelvinator of India Ltd.
256 ITR 1 · 2002 · High Court
439
citing judgments

An Assessing Officer cannot reopen an assessment under Section 147 based on a mere change of opinion regarding the same material available during the original assessment. Reopening requires fresh, tangible material or information that leads to a reason to believe income has escaped assessment.

Phool Chand Bajrang Lal v. ITO
203 ITR 456 · 1993 · Supreme Court
396
citing judgments

Reassessment proceedings under Section 147 are valid even after a scrutiny assessment under Section 143(3), provided the Assessing Officer forms a reason to believe, based on definite, specific, and reliable information, that income escaped assessment due to the assessee's failure to fully and truly disclose material facts.

Calcutta Discount Co. Ltd. v. ITO
41 ITR 191 · 1961 · Supreme Court
384
citing judgments

The assessee's duty is limited to disclosing all primary, material facts necessary for assessment, including entries, documents, and other evidence. It is for the Assessing Officer to draw inferences of fact and law, and the assessee is not obligated to offer such inferences.

CIT v. Foramer France
264 ITR 566 · 2003 · Supreme Court
253
citing judgments

Reassessment proceedings initiated under Section 147 beyond four years from the end of the relevant assessment year are invalid unless the assessee failed to disclose fully and truly all material facts necessary for assessment. Without such failure, the notice issued under Section 148 is time-barred and without jurisdiction.

Haryana Acrylic Manufacturing Company v. CIT
308 ITR 38 · 2009 · High Court
248
citing judgments

Reassessment proceedings are invalid if the reasons recorded for initiating action under section 148 are not served on the assessee within the limitation period prescribed by section 149. Furthermore, reassessment cannot be based on a mere change of opinion without tangible material, particularly when the assessee has made a full and true disclosure of material facts.

Asian Paints Ltd. v. DCIT
308 ITR 195 · 2009 · High Court
175
citing judgments

An Assessing Officer cannot issue a notice under Section 148 to reopen an assessment when all material facts were already before the AO during the original assessment, even if the AO failed to apply their mind at that time. Such an action constitutes an impermissible review of a concluded assessment rather than a reassessment based on fresh tangible material.

New Delhi Television Ltd. v. DCIT
116 Taxmann.com 151 · 2020 · Supreme Court
139
citing judgments

Reassessment initiated under Section 147/148 is invalid if the Assessing Officer relies on material obtained post-recording of reasons, or if it amounts to a mere change of opinion on facts fully and truly disclosed by the assessee during the original assessment. An assessee's obligation extends only to the full and true disclosure of primary facts, not to provide further assistance or inferences.

Sabh Infrastructure Ltd. v. ACIT
398 ITR 198 · 2017 · High Court
137
citing judgments

Sanction under Section 151 granted in a mechanical manner, without application of mind, vitiates reassessment proceedings under Sections 147 and 148. The court also laid down guidelines for the Revenue to follow when reopening assessments, emphasizing the need to provide reasons and approval documentation to the assessee.

Judgments citing full and true disclosure

Assistant Commissioner of Income Tax, Cir.1(1)(1), Surat vs. Enviro Control Pvt. Ltd., Surat

In the result, all the grounds of appeal raised by the revenue are dismissed

ITA 345/SRT/2022[2011-12]Status: DisposedITAT Surat05 Apr 2023AY 2011-12

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini(Virtual Hearing) A.C.I.T., Enviro Control Pvt. Ltd., Circle-1(1)(1), Enviro House, Opp. Bank Of Vs. Surat. Maharashtra, Ghod Dod Road, Surat-395007. Pan No. Aaace 8700 C Appellant/ Assessee Respondent/ Revenue

Section 143(2)Section 143(3)Section 148Section 254(1)

with return of income and other relevant documents where various information and materials were disclosed in the original assessment proceedings. However, the requisite full and true disclosure of all material facts necessary for assessment has not been made, thus, justified the reopening. On substantiation of purchases, the Assessing Officer accepted

DCIT, CC-15, New Delhi vs. Bdr Builders & Developers P. Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 1177/DEL/2021[2012-13]Status: DisposedITAT Delhi16 Mar 2023AY 2012-13

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Usasstt. Year: 2012-13 Dcit, Vs. Bdr Builders & Developers P. Ltd,B- Central Circle-15, 393, Zakir Nagar So, South East Delhi, New Delhi New Delhi-1100025 (Appellant) (Respondent) Pan No. Assessee By : Dr. Rakesh Gupta, Adv. Revenue By : Sh. Kanv Bali, Sr. Dr Date Of Hearing: 28.02.2023 Date Of Pronouncement: 16.03.2023

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Sh. Kanv Bali, Sr. DR
Section 139(1)Section 143(3)Section 147Section 148Section 153ASection 68

Question No.2 24. Coming to the second question as to whether there was failure on the part of the assessee to make a full and true disclosure of all the relevant facts. The case of the assessee is that it had disclosed all facts which were required to be disclosed ... orders dated 03.08.2012 passed in the cases of M/s. NDTV Labs Ltd. and M/s. NDTV Lifestyle Ltd. Therefore, in our opinion there was full and true disclosure of all material facts necessary for its assessment by the assessee. 29. The fact that stepup coupon bonds for US$ 100 million were

Ramjilal Construction Pvt. Ltd., New Delhi vs. ITO, Ward- 21(1), New Delhi

In the result, the appeal of the assessee is allowed

ITA 4736/DEL/2019[2012-13]Status: DisposedITAT Delhi03 Mar 2023AY 2012-13

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: NoneFor Respondent: Sh. K. K. Mishra, Sr. DR
Section 143(3)Section 271Section 271(1)(c)Section 274

additional income offered by the assessee. That the assessee company prays that having regard to the facts and circumstances stated above and the full and true disclosure of additions income herein made voluntarily and good faith by the assessee, your goodself is requested to waive penalty

Sumangal Techpark (P) Ltd, New Delhi vs. ITO Ward - 24(3), New Delhi

In the result, the appeal filed by the assessee is partly allowed

ITA 3840/DEL/2019[2010-11]Status: DisposedITAT Delhi23 Feb 2023AY 2010-11

Bench: Shri Anil Chaturvedi & Shri C.M. Gargassessment Year: 2010-11 Sumangal Techpark (P) Ltd., Vs. Ito, 117, Hans Bhawan, Ward-24(3), 1 Bsz Marg, New Delhi. New Delhi. Pan: Aalcs4760R (Appellant) (Respondent) Assessee By : Shri S.K. Gupta, Ca Revenue By : Ms Kirti Sankratyayan, Sr. Dr Date Of Hearing : 19.12.2022 Date Of Pronouncement : 23.02.2023 Order Per C.M. Garg, Jm: This Appeal Filed By The Assessee Is Directed Against The Order Dated 26.02.2019 Of The Cit(A)-8, New Delhi, Relating To Assessment Year 2010-11. 2. First Of All, We Have Heard The Arguments Of Both The Representatives On Legal Ground No.1 Of The Assessee Which Reads As Under:- “3. The Initiation Of The Proceedings U/S 148 & The Consequent Order Us 147 Are Bad In Law As A) The Initiation Of Proceedings U/S 148 Are Contrary To Provisions Of Law B) The Mandatory Procedure Laid Down In The Act Has Not Been Followed. C) The Notice Issued U/S 148 Is Time Barred As Issued After 4 Years From The End Of The Relevant Assessment Year Where The Case Has Already Been Assessed U/S 143(3). D) The Approval Of Addl. Cit & Pcit Is Bad In Law & Mechanical Without Application Of Mind & Has Been Taken Without Bringing To Their Notice Material Facts Of The Case. E) The Information Has Been Collected Behind The Back Of The Assessee & The Assessee Was Never Confronted With The Same Nor An Opportunity Provided For Cross-Examination Of Jain Brothers, Alleged Intermediary & The Relevant Seized Material Relied Upon Has Not Been Provided To The Assessee.”

For Appellant: Shri S.K. Gupta, CAFor Respondent: Ms Kirti Sankratyayan, Sr. DR
Section 143(3)Section 147Section 148Section 151Section 292B

purchase and sale of shares, it did not disclose the real colour / true character of the transactions and, therefore, did not make a full and true disclosure of all material facts which was also overlooked by the AO, is not correct. The assessee disclosed the primary facts

ITO, Ward-30(4), New Delhi vs. Amit Mittal, New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 697/DEL/2020[2011-12]Status: DisposedITAT Delhi14 Feb 2023AY 2011-12

Bench: Sh. C. M. Gargdr. B. R. R. Kumar

For Appellant: Sh. Sanjay Kumar, CAFor Respondent: Sh. Kanv Bali, Sr. DR
Section 10BSection 139(1)Section 143(3)Section 147Section 148Section 151(2)

assessee failed to furnish a valid audit report in prescribed Form 56G and consequently the assessee failed to make full and true disclosure of all the facts? 2. Whether on facts and circumstances of the case, the Ld. CIT(A) was right in law and on facts that the assessee ... March 2016, he was of the considered view that there is no failure on the part of the assessee in making full and true disclosure of all the facts and therefore, in the instant case reopening of assessment after the expiry of four years from the end of relevant assessment

Hazari Lal Kesari Chand, New Delhi vs. ACIT, Circle-48(1), New Delhi

In the result, the appeal of the assessee is dismissed

ITA 8561/DEL/2019[2007-08]Status: DisposedITAT Delhi10 Feb 2023AY 2007-08

Bench: Shri Anil Chaturvedi & Shri Yogesh Kumar U.S

For Appellant: N O N EFor Respondent: Shri
Section 132Section 133(6)Section 143(1)Section 148

basis of the re-opening. My adjudication would be incomplete, if I did not refer to judgments on the concept of full and true disclosure. New Delhi Television Ltd. Vs DCIT [2017] 84 taxmann.com 136 (Delhi) where Hon'ble Delhi High Court held that: proceedings under section 147, beyond

Jenny Elton Vales, Dona Paula vs. ITO, Ward - 5, Margao

In the result, the appeal of assessee in ITA No

ITA 65/PAN/2020[2009-10]Status: DisposedITAT Panaji30 Jan 2023AY 2009-10

Bench: Shri S.S. Viswanethra Ravi

For Appellant: Shri D. E. RobinsonFor Respondent: Shri N. Shrikanth
Section 143(1)Section 143(3)Section 154Section 155Section 5A

case of Shri Elton G Vales for the A Y 2009-10. Clause II of your letter: there was a full and true disclosure of material facts, and assessment u/ s. 143(1) is already completed. i) The argument that there was a full and true disclosure of material facts

Jenny Elton Vales, Dona Paula vs. ITO, Ward - 5, Margao

In the result, the appeal of assessee in ITA No

ITA 64/PAN/2020[2007-08]Status: DisposedITAT Panaji30 Jan 2023AY 2007-08

Bench: Shri S.S. Viswanethra Ravi

For Appellant: Shri D. E. RobinsonFor Respondent: Shri N. Shrikanth
Section 143(1)Section 143(3)Section 154Section 155Section 5A

case of Shri Elton G Vales for the A Y 2009-10. Clause II of your letter: there was a full and true disclosure of material facts, and assessment u/ s. 143(1) is already completed. i) The argument that there was a full and true disclosure of material facts

Hetram Bokan, Gurgaon vs. ITO Ward - 2(1), Gurgaon

In the result, the appeal of the assessee is partly allowed

ITA 1688/DEL/2019[2013-14]Status: DisposedITAT Delhi12 Jan 2023AY 2013-14

Bench: Shri Kul Bharat[Assessment Year : 2013-14] Hetram Bokan, Vs Ito, 226, 2Nd Floor, Jmd Megapolis, Ward-2(1), Sohna Road, Sector-48, Gurgaon. Gurgaon, Haryana-122001. Pan-Amkpb3430B Appellant Respondent Appellant By None Respondent By Shri Ramdhan Meena, Sr.Dr Date Of Hearing 12.01.2023 Date Of Pronouncement 12.01.2023

Section 139(4)Section 147Section 234A

chargeable to tax had escaped assessment. Such belief can be reached in any manner, and is not qualified by a pre-condition of full and true disclosure of material facts by the assessee as contemplated in the pre-amended section 14 7( a) of the Act. In the instant case

Asstt. CIT - 1(1)(1), Mumbai vs. M/S. Global Holding Corporation P. Ltd., Mumbai

In the result, the appeal of the In the result, the appeal of the Revenue is dismissed

ITA 577/MUM/2021[2012-13]Status: DisposedITAT Mumbai22 Dec 2022AY 2012-13

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Assessment Year: 2012-13 Acit-1(1)(1), M/S Global Holding 579, Aayakar Bhavan, Corporation Pvt. Ltd., Vs. M.K. Road, 201A, Janmbhoomi Chambers, Mumbai-400020. 29 Walchand Hirachand, Ballard Estate, Mumbai- 400038. Pan No. Aaacn 8301 L Appellant Respondent : Revenue By Mr. Rakesh Garg, Cit-Dr : Assessee By Mr. K. Shivaram, Sr. Adv. & Ms. Neelam Jadhav, Ar : Date Of Hearing 11/10/2022 : Date Of Pronouncement 22/12/2022

For Respondent: Revenue by Mr. Rakesh Garg, CIT-DR
Section 132Section 143(1)Section 245D(6)

return of income, wherein the assessee is required to to a return of income, wherein the assessee is required to make a full and true disclosure of his make a full and true disclosure of his income and the income and the order under section 245D ... However, . However, when section 245C section 245C of the Act requires the assessee to of the Act requires the assessee to make a full and true disclosure of his income for the period make a full and true disclosure of his income for the period make a full and true

Tata Motors Ltd, Mumbai vs. Asst CIT (Ltu), Mumbai

In the result, appeal of the assessee is allowed and appeal of the Revenue is dismissed

ITA 7543/MUM/2013[2002-03]Status: DisposedITAT Mumbai30 Nov 2022AY 2002-03
Section 143(1)Section 147Section 148

that the ld. AO should record in the reasons that there was a failure on the part of the assessee to make full and true disclosure of facts necessary for assessment would not be required in the instant case. Other than this aspect, the decision rendered by this Mumbai Tribunal

Asst CIT Ltu, Mumbai vs. The Tata Finance Ltd, Mumbai

In the result, appeal of the assessee is allowed and appeal of the Revenue is dismissed

ITA 7359/MUM/2013[2002-03]Status: DisposedITAT Mumbai30 Nov 2022AY 2002-03
Section 143(1)Section 147Section 148

that the ld. AO should record in the reasons that there was a failure on the part of the assessee to make full and true disclosure of facts necessary for assessment would not be required in the instant case. Other than this aspect, the decision rendered by this Mumbai Tribunal

The Pr. CIT Mumbai City-19, Mumbai vs. Shri Champaklal M. Mehta, Mumbai

In the result, the impugned notice is quashed

ITA 2253/MUM/2022[2011-12]Status: DisposedITAT Mumbai25 Nov 2022AY 2011-12
Section 143(3)Section 148

record. c. Reopening in this case has been made beyond 4 years without showing any failure on the part of appellant to make full and true disclosure. 5. I have gone through the facts of the case. In this case, the appellant has clearly pointed out that he has filed

Sabara Impex Ltd, Mumbai vs. ITO WD 2(3)(2), Mumbai

In the result, appeal filed by the assessee is fully dismissed

ITA 3267/MUM/2013[1996-97]Status: DisposedITAT Mumbai17 Nov 2022AY 1996-97

Bench: Shri Vikas Awasthy & Shri Gagan Goyal

For Appellant: NoneFor Respondent: Ms. Nilu Jaggi, Sr.DR
Section 131Section 143(3)Section 147Section 148Section 68Section 80H

course of penalty proceedings the assessee has failed to offer any plausible explanation in this regard thus the assessee has failed to make full and true disclosure of the facts while computing its income and filed return of income with inaccurate particulars and thereby concealing its taxable income

ACIT Central Circle 2(1), Chennai vs. Cavinkare Pvt. Ltd., Chennai

Appeal stand allowed

ITA 1076/CHNY/2018[2008-09]Status: DisposedITAT Chennai19 Oct 2022AY 2008-09

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri T. Banusekar (C.A) – Ld. ARFor Respondent: Shri ARV Sreeenivasan (Addl. CIT) –Ld. DR
Section 143(3)Section 147Section 148Section 149Section 151Section 36(1)(iii)

assessment and Ld. AO did not draw reference to any fresh tangible material based on which belief was formed. The assessee had made full and true disclosure of all facts during the scrutiny assessment proceedings and therefore, no action u/s 147 could be undertaken after 4 years. For the same ... that there was no fresh tangible material, could not be upheld. It could also not be accepted that there was full and true disclosure qua the issues flagged in the reassessment proceedings at the time of regular assessment proceedings since no such examination / verification of the issues was done

Dy. CIT-10(2)(1), Mumbai vs. Lyka Labs Ltd., Mumbai

ITA 3175/MUM/2019[2004-05]Status: DisposedITAT Mumbai27 Sept 2022AY 2004-05

Bench: Shri Kuldip Singh & Shri S. Rifaur Rahman

For Appellant: Shri Jayesh Dadia, A.RFor Respondent: Shri Manoj Sinha, D.R
Section 143(3)Section 271Section 271(1)(c)Section 28Section 55(2)

false or misleading or inaccurate. It cannot be denied that there is no failure on the part of the assessee to make full and true disclosure of all material facts and any explanation of assessee has not been found to be false. Therefore, this is a case where penalty

Dy. CIT-10(2)(1), Mumbai vs. Lyka Labs Ltd., Mumbai

ITA 2050/MUM/2019[2002-03]Status: DisposedITAT Mumbai27 Sept 2022AY 2002-03

Bench: Shri Kuldip Singh & Shri S. Rifaur Rahman

For Appellant: Shri Jayesh Dadia, A.RFor Respondent: Shri Manoj Sinha, D.R
Section 143(3)Section 271Section 271(1)(c)Section 28Section 55(2)

false or misleading or inaccurate. It cannot be denied that there is no failure on the part of the assessee to make full and true disclosure of all material facts and any explanation of assessee has not been found to be false. Therefore, this is a case where penalty

Deputy Commissioner of Income Tax 10(2)(1), Mumbai vs. Lyka Labs Ltd, Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 2934/MUM/2019[2001-02]Status: DisposedITAT Mumbai29 Aug 2022AY 2001-02

Bench: Shri Pramod Kumar & Shri Pavan Kumar Gadaledcit – 10(2)(1) Vs. M/S. Lyka Labs Ltd., 5Th Floor, Room No. Ground Floor, Spencer 509, Aayakar Bhavan, Bldg, 30, Forjett Street. Churchgate, Grant Road(West), Mumbai -400036. Mumbai -400020. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacl0820G Appellant .. Respondent Appellant By : Smt.Shailja Rai. Cit Dr Respondent By : Shri .Jayesh Dadia. Ar Date Of Hearing 28.07.2022 Date Of Pronouncement 29.08.2022 आदेश / O R D E R Per Pavan Kumar Gadale, Jm: The Revenue Has Filed The Appeal Against The Order Of The Commissioner Of Income Tax (Appeals) -17, Mumbai Passed U/S 271(1)(C) & 250 Of The Act. The Revenue Has Raised The Following Grounds Of Appeal:

For Appellant: Smt.Shailja Rai. CIT DRFor Respondent: Shri .Jayesh Dadia. AR
Section 143(2)Section 14ASection 271(1)(c)Section 28Section 55(2)

false or misleading or inaccurate. It cannot be denied that there is no failure on the part of the assessee to make full and true disclosure of all material facts and any explanation of assessee has not been found to be false. Therefore, this is a case where penalty

Dinesh Kumar Singhi, Bangalore vs. Deputy Commissioner of Income Tax, Circle- 1(1)(2), Bangalore

In the result, the appeal filed by the assessee for A

ITA 379/BANG/2020[2013-14]Status: DisposedITAT Bangalore29 Aug 2022AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Respondent: Shri K.R. Pradeep & Smt. G.P
Section 147Section 148Section 234ASection 68Section 69C

sale of shares of Blue Circle escaped assessment which is a penny stock. 5. Law with regard to, what is meant by "full" and "true" disclosure, has been succinctly laid down by a Constitution Bench of Hon’ble Supreme Court in case of Callcutta Discount Co. Ltd. v. ITO reported ... fresh material to come to the conclusion that income has escaped assessment. However the mandate of the law that there was no full and true disclosure of Page 16 of 21 ITA Nos. 378 & 379/Bang/2020 all material and relevant facts to determine true income, does not stand fulfilled

Dinesh Kumar Singhi, Bangalore vs. Deputy Commissioner of Income Tax, Circle- 1(1)(2), Bangalore

In the result, the appeal filed by the assessee for A

ITA 378/BANG/2020[2012-13]Status: DisposedITAT Bangalore29 Aug 2022AY 2012-13

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Respondent: Shri K.R. Pradeep & Smt. G.P
Section 147Section 148Section 234ASection 68Section 69C

sale of shares of Blue Circle escaped assessment which is a penny stock. 5. Law with regard to, what is meant by "full" and "true" disclosure, has been succinctly laid down by a Constitution Bench of Hon’ble Supreme Court in case of Callcutta Discount Co. Ltd. v. ITO reported ... fresh material to come to the conclusion that income has escaped assessment. However the mandate of the law that there was no full and true disclosure of Page 16 of 21 ITA Nos. 378 & 379/Bang/2020 all material and relevant facts to determine true income, does not stand fulfilled