INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - Reopening beyond period of four years from end of relevant year - Full disclosure of all material particulars in original return of income

AO initiated reassessment proceedings under section 147 beyond period of four years from the end of the relevant year. He alleged that income chargeable to tax had escaped assessment on account of failure of assessee to have made a full and true disclosure of the income at the original instance. Held: It was found that all the issues based on which the re-assessment proceedings, had been initiated, were considered even at the time of original proceedings. Further, queries relating to such issues had been raised by AO even at that juncture and the assessee admittedly furnished explanations and details in response thereto. Further, the reasons for reassessment themselves revealed that the assumption of jurisdiction was only based on materials already available on record and no new, tangible materials had been culled out thereafter. Furthermore, there was no dispute that the alleged escapement of income was not attributable to non-disclosure of material particulars by the assessee. Therefore, the conditions precedent in the proviso to section 147, were not attracted in the instant case. Hence, the re-opening of the assessment beyond the period of four years was quashed as there was a full disclosure of all material particulars in original return of income filed by the assessee.

REFERRED : Asstt. CIT & Ors. v. ICICI Securities Primary Dealership Ltd. (2012) 348 ITR 299 (SC) : 2012 TaxPub(DT) 2968 (SC).

FAVOUR : In assessee's favour.

A.Y. : 2012-13

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