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2014 (5) TMI 511 - HC - Income TaxValidity of notice u/s 148 of the Act – Reopening of assessment – Bar of limitation – Whether there was failure on the part of the assessee to disclose truly and fully all material facts for assessment – Held that:- The entire modality of disclosing undisclosed income was placed before AO during the proceedings of assessment itself - This included a sum as an amount admitted during the survey - If the AO had any doubt or dispute pertaining to valuation of the undisclosed stock and the disclosure of additional income by the assessee, he ought to have pursued the issue further during the assessment itself - By no stretch of imagination can it be stated that the issue that the AO now desires to raise for which the notice for reopening has been issued, flows from failure on the part of the assessee to disclose necessary facts. The assessee made a disclosure during survey of unaccounted stock - He forwarded it by filing a return maintaining such disclosure giving shape of declared income - If the AO felt that valuation of the stock was inaccurate - the disclosure was not full and he could as well have taxed the additional income, which in his opinion was not reflected by the assessee - it cannot be said that the income chargeable to tax had escaped the assessment due to failure on the part of the assessee to disclose truly and fully all material facts – notice is set aside - Decided in favour of Assessee.
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