PARASHURAM POTTERY WORKS CO. LTD. vs INCOME TAX OFFICER, CIRCLE-1, WARD 'A', RAJKOT,GUJARAT

The Supreme Court ruled that under Section 147 of the Income Tax Act, 1961, the Income Tax Officer (ITO) can reopen an assessment if there is a failure on the part of the assessee to disclose fully and truly all material facts. The Court held that the appellant, a Public Limited Company, failed to disclose that initial depreciation had been allowed in previous years, justifying the ITO's action to reopen the assessment. The High Court's dismissal of the appellant's Writ Petition was upheld, confirming the ITO's authority to correct errors based on new information.