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2019 (5) TMI 1552 - ITAT DELHIReopening of assessment u/s 148 - notice beyond the period of four years when the original assessment was completed u/s 143(3) - undisclosed income of the assessee which was utilized for obtaining Donation from M/s Society for Welfare of Handicapped Person - HELD THAT:- First proviso to section 147 is applicable the reasons recorded should show in what manner the assessee had failed to make a full and true disclosure of all material facts necessary for the assessment. The failure to do so would not be more irregularity but it would render the reopening of assessment after four year invalid. In the reasons recorded, the AO nowhere mentioned that which material facts assessee failed to disclose. There is no finding by the AO that there is any failure on the part of the assessee to make a full and true disclosure of any material fact and therefore on these fact, in the case of HCL Technologies Limited [2017 (7) TMI 962 - DELHI HIGH COURT] as well as Unitech Limited [2017 (7) TMI 1010 - DELHI HIGH COURT] would be squarely applicable. Allegation in the reasons recorded is that there was a society at Kolkata named as M/s Society for Welfare of Handicapped Person. The assessee paid the cash of ₹ 50,00,000/- to the said society and got the cheque of donation of ₹ 50,00,000/-. Thus the assessee utilized its undisclosed income to get the accommodation entry in the form of donation of ₹ 50,00,000/-. However, at the time of conclusion of the reasons recorded the Assessing Officer himself has mentioned that the assessee has furnished the list of donation during assessment proceedings but no donor from M/s Society Welfare of Handicapped Person is mentioned. Thus, when the assessee has not claimed to have received any donation from the said society the question of making any cash payment from undisclosed sources by the assessee could not arise. Therefore, we are of the opinion that there was no justifiable reason for arriving at the finding by the Assessing Officer that there was undisclosed income of the assessee which was utilized for obtaining Donation from M/s Society for Welfare of Handicapped Person. Relying upon the decision of Hon’ble Jurisdictional High Court in the case of Unitech Limited (supra) and also in HCL Technologies Limited (supra) we quash the notice issued for reopening of assessment u/s 148. Once the notice for reopening of assessment u/s 148 is quashed, the assessment order passed in pursuance to such notice cannot survive the same is also quashed. - Decided in favour of assessee.
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