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2021 (2) TMI 752 - GUJARAT HIGH COURTReopening of assessment u/s 147 - independent application of mind or not? - AO relied upon information received from the Investigation Wing, Surat, while recording the reasons for reopening of the assessment - undisclosed bank account of the writ applicant - HELD THAT:- Authority concerned had relied on the primary information of the undisclosed account and after independent inquiry and upon verification of the return of income and other documents, recorded his satisfaction and formed a reasonable belief that, the income of the writ applicant has escaped assessment and therefore, the reasons recorded for reopening of the assessment as referred to above, we are of the view that, the Assessing Officer was justified to reopen the assessment. The income of return for the year under consideration, was not taken on further scrutiny as provided under Section 143(3) and the same was accepted under Section 141 of the Act. It is required to be noted that, Section 139 of the Act impose an obligation on the assessee to furnish voluntarily a return of his total income and further makes it obligatory to disclose all material facts necessary for his assessment for that year fully and truly. It was the duty of the assessee to bring to the notice of the respondent with regard to transactions made in the bank account which were relevant for the assessment for that year. Merely submission or production of books of accounts or other documents is not sufficient. It is profitable to refer the explanation 1 of Section 147 of the Act, which explains that, the production before the Assessing Officer of the account books or other evidence from which material evidence could with due diligence have been discovered by the Assessing Officer will not necessarily amount to disclosure within the meaning of foregoing proviso. Thus we hold that, details available in the books of account for balance sheet or profit or loss account cannot absolve the assessee from his disclosure obligation under Section 147 of the Act as in the instant case, without any scrutiny, the original return was process under Section 143(1) of the Act. It cannot be said that there was no material before the Assessing Officer to reopen the assessment and he proceeded mechanically based on the sole information received from the Investigation Wing and the impugned notice is without jurisdiction and contrary to Section 147 - Decided against assessee.
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