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| The Tax Publishers2019 TaxPub(DT) 2181 (Del-Trib) INCOME TAX ACT, 1961
Section 147 Proviso
Reopening of assessment after expiry of four years from the end of relevant assessment year and made addition merely on the basis of information emanated from investigation wing without there being failure on assessee's part to disclose fully and truly all material fact was hit was proviso to section 147 and was, therefore, set aside.
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Reassessment - Beyond four years - Validity - No failure to disclose fully and truly all material facts
AO received information from investigation wing as to assessee having taken accommodation entries in the shape of share capital from various companies. Accordingly, AO reopened assessment after expiry of four years from the end of relevant assessment year and made addition. Held: AO merely acted on the advice of Investigation Wing. It was nowhere mentioned in reasons recorded for reopening of assessment if there was any failure on the part of assessee to disclose fully and truly all material facts, accordingly reopening was hit by proviso to section 147 and was, therefore, set aside.
Relied on:Sri Sakthi Textiles Ltd. v. JCIT and another (2012) 340 ITR 144 (Mad.) : 2010 TaxPub(DT) 2170 (Mad-HC)Karti P. Chidambaram & Ors. v. ACIT (2018) 402 ITR 488 (Mad.) : 2017 TaxPub(DT) 5157 (Mad-HC)Avtec Ltd. v. DCIT (2017) 395 ITR 434 (Del.) : 2017 TaxPub(DT) 1781 (Del-HC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
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