INCOME TAX ACT, 1961

Section 148

Reassessment - Notice issued under section 148 - Notice issued beyond four years -

AO reopened assessment by issuing notice under section 148 beyond four years on the grounds that firstly, as per the seized documents (Annexure-A7) during the search, an amount of Rs. 20,00,000 was stated to have been paid in cash by assessee to one S.K.G which was undisclosed and secondly, AO relied upon was the seizure of vouchers during the search showing a total payment of Rs. 85,35,000 to assessee which was also undisclosed. Held: Once the Department, i.e., the AO had certain information, material, or document before him during the assessment proceeding, irrespective of the source of such information, material, or document, the assessee cannot be blamed for non-disclosure thereof. Thus, where Department already had collected certain documents and materials which were before AO at the time of framing assessment. If AO did not, for some reason, advert to such material or did not utilize the same, he surely could not allege that assessee had failed to disclose truly and fully all material facts. Thus, notice issued under section 148 beyond four years on basis of failure of assessee to disclose truly facts were not valid.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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