The Tax Publishers2020 TaxPub(DT) 0415 (Chen-Trib)

INCOME TAX ACT, 1961

Section 147

From perusal of reassessment order, it was clear that AO had not made reference to any tangible material nor which had come to his notice after completion of original assessment which enabled AO to form an opinion that income escaped assessment. Therefore, it could be safely concluded that reassessment proceedings were initiated based on materials already available on record. It was a case of mere change of opinion on the same set of information/material. The other requisite condition to be satisfied in case where the reopening was sought for after expiry of four years from the end of relevant assessment year, was that there should be failure on the part of assessee to disclose all material facts which are necessary for assessment. Admittedly, there was no such allegation by AO, therefore, reopening beyond four years was hit by proviso to section 147 and order passed under section 147 was, therefore, invalid.

Reassessment - Beyond four years - No failure to disclose fully and truly all material facts -

AO reopened assessment after expiry of four years from the end of relevant assessment year and completed reassessment disallowing dying expenditure on the ground that TDS provisions were not complied with.Held: From perusal of reassessment order, it was clear that AO had not made reference to any tangible material nor which had come to his notice after completion of original assessment which enabled AO to form an opinion that income escaped assessment. Therefore, it could be safely concluded that reassessment proceedings were initiated based on materials already available on record. It was a case of mere change of opinion on the same set of information/material. The other requisite condition to be satisfied in case where the reopening was sought after expiry of four years from the end of relevant assessment year was that there should be failure on the part of assessee to disclose all material facts which are necessary for assessment. Admittedly, there was no allegation by AO that there was any such failure on the part of assessee, therefore, reopening beyond four years was hit by proviso to section 147 and order passed under section 147 was, therefore, invalid.

Relied:CIT v. Schwing Stetter India Pvt. Ltd. (2015) 122 DTR 289 (Mad) : 2015 TaxPub(DT) 3031 (Mad-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2011-12

IN THE ITAT, CHENNAI BENCH

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