(Petitions under Article 136 of the Constitution of India for special leave to appeal against the judgment and order of the Bombay High Court dated August 10, 1990, in Writ Petitions Nos.1634 and 2919 of 1988. The judgment of the High Court is reported as V.I.P. Industries Ltd. v. Inspecting Assistant Commissioner (1991) 187 ITR 639 (Bom.).

Income-tax---

----Reassessment---Failure to disclose material facts---Materials furnished by assessee during original assessment proceedings---Assessments completed accepting returns---Subsequent notices for reassessment on ground that certain payments and purchases were not genuine---Writ petition challenging notices---High Court quashed the notices---Supreme Court set aside the order on ground that fresh facts had come to notice of officer and matter was remanded to Income-tax Officer.

The Income-tax Officer had completed the original assessments of the respondent after the respondent had furnished details about commission payments and certain purchases. Thereafter, the Income-tax Officer initiated reassessment proceedings under section 147(a) of the Indian Income-tax Act, 1961, on the ground that payments of commission and part of the purchases were not genuine. On a writ petition filed by the respondent, the High Court quashed the notices on the ground that the necessary materials were before the Income-tax Officer during the original assessment proceedings: See (1991) 187 ITR 639 (Bom). The Department preferred petitions for special leave to appeal to the Supreme Court. The Supreme Court set aside the order of the High Court on the ground that, subsequently, facts had come to the notice of the Department to the effect that the facts disclosed were not true and correct and remanded the case to the Income-tax Officer for decision in accordance with law.

V.I.P. Industries Ltd. v. Inspecting Assistant Commissioner (1991) 187 ITR 639 set aside.

Dr. V. Gauri Shankar, Senior Advocate with S. Rajappa and Ms. A. Subhashini, Advocates for Petitioner.

Sunil Dogra, J.H. Parekh and P.H. Parekh, Advocates for Respondent.

ORDER

After hearing learned counsel for both the parties, we are unable to uphold the order of the High Court. It appears that, subsequently, facts have come to the notice of the Income-tax Department that the facts disclosed in the return are not a true and correct declaration of facts. In that view of the matter, we set aside the order of the High Court passed in Writ Petition No.1634 of 1988 with Writ Petition No.2919 of 1988 (V.I.P. Industries v. Inspecting Assistant Commissioner (1991) 187 ITR 639 (Bom.), and send the case back on remand to the Income-tax Officer for a decision in accordance with law after giving an opportunity of hearing to the parties concerned.

The special leave petitions are disposed of.

M.BA./1224/T Case remanded.