INCOME TAX ACT, 1961

Section 147, Proviso

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

AO received information from investigation wing as to assessee having received accommodation entries from certain entry operator. Accordingly, AO reopened assessment after expiry of four years from the end of relevant assessment year. Assessee case was that reopening was hit by proviso to section 147.Held: As evident from reasons recorded for reopening, AO had even not mentioned as on what account or transactions assessee had taken accommodation entry AO just narrated contents as received by him from investigation wing without having all the details and Investigation Report. AO even in the assessment order had not made any reference of investigation carried out by him during reassessment proceedings but he simply relied on information received from investigation wing and queries raised to assessee which was replied by assessee. Apart from seeking explanation from assessee, AO had not conducted any enquiry in respect of said information from party concerend who had allegedly made the statement of providing accommodation entries. Further, AO in the reasons recorded had not even alleged that there was a failure on part of assessee to disclose fully and truly all material facts necessary for assessment. Accordingly, reopening was hit by proviso to section 147 and was, therefore, set aside.

Followed:Dwarka Gems Ltd. v. Dy. CIT [ITA No. 71/JP/2017, dated 27-3-2018].

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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