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2022 (2) TMI 316 - ITAT SURATValidity of Reopening of assessment u/s 147 - Eligibility of reasons to believe - notice after expiry of four year - unexplained expenditure u/s 69 - HELD THAT:- Admittedly notice under section 148 was issued after expiry of four year from the end of relevant assessment year, therefore the Proviso to section 147 will come into effect. And as per said Proviso, no action can be taken after expiry of four year unless any income chargeable to tax has escape assessment by the reasons on the failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment. As the assessee has already disclosed all the facts fully and truly all necessary for assessment in the form of expenses of purchases shown purchases. Hence, we are of the view that notice under section 148 is issued on the basis of material available on record on the file of AO, thus, it is also a case of change of opinion, which is not permissible under law and has been held in CIT Vs Kelvinator of India Ltd. [2010 (1) TMI 11 - SUPREME COURT]. In view of the aforesaid factual and legal discussion, we are of the view that the reopening under section 147 and issuance of notice under section 148 is not in accordance with law and the same is set aside, resultantly the assessment order dated 25.02.2015 is quashed. Considering the facts that we have accepted two primary submissions of the Ld. AR for the assessee, therefore discussions on other submissions has become academic. In the result, ground No. 1of the appeal is allowed. Unexplained expenditure u/s 69 - We find that the AO has not rejected the books of the assessee, no comment was made by the AO on various documentary evidence, which were available before him. The ld AR for the assessee further submits that the assessee has declared better gross profit (GP) for the year under consideration @ 5.19%, which is more than the earlier years. Therefore, we find that the assessee has good case on merit as well - Appeal of the assessee is allowed
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