MALEGAON ELECTRICITY CO. (P) LTD. vs THE COMMISSIONER OF INCOME-TAX, BOMBAY

The Supreme Court held that under Section 34(1)(a) of the Indian Income-tax Act, 1922, the assessee has a duty to disclose fully and truly all material facts necessary for assessment. The Court found that the appellant failed to disclose the profits from the sale of assets, as the price realized exceeded the written down value, which constituted a failure to disclose material facts. Consequently, the Tribunal's decision was overturned, and the reassessment by the Income-tax Officer was upheld.