opinion which is not permissible in law. The reasons do not indicate
anywhere what was the material fact that petitioner had failed to disclose.
In the reasons for reopening, the Assessing Officer infact states "on going
through the case records of the assessee, it is found....". In the reasons for
reopening, there is not even a whisper as to what was not disclosed. Even in
the order rejecting the objections, respondent states that the assessee filed
its return of income declaring at Rs.Nil and subsequently, the return of
income was selected for scrutiny and assessment under Section 143(3) of
the said Act and on going through the case record of the assessee, he found
the details which have been mentioned in the reasons. The basis, as
contained in the reasons for reopening, is that assessee, being an Indian
company, is paying equal annual installments of franchisee fee of
Rs.30,03,60,000/- to BCCI every year using the same exchange rate of
1 USD = INR 40. However, as per the requirements of the invitation to
tender, the payment of franchisee fee is required to be made in Indian
rupees by using the TT selling exchange rate and as such non consideration
of exchange rate had benefited the assessee to the extent of
Rs.33,80,77,707/- which has not been offered by the assessee to tax. Hence,
there is an escapement of income.
