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2022 (7) TMI 481 - ITAT VISAKHAPATNAMValidity of reopening of assessment u/s 147 - Notice after a period of four years from the end of the relevant AY - TDS u/s 194C - Disallowance u/s. 40(a)(ia) for non deduction of tax at source - Freight charges paid - HELD THAT:- We find from the order of the Ld. AO that the intimation was processed U/s. 143(1) of the Act and the case was selected for scrutiny under CASS. Subsequently, the assessment was completed U/s. 143(3) on 18/12/2007. The AO had issued a notice U/s. 148 on 20/09/2011 for the AY 2005-06. We find force in the Ld. AR's argument that since the assessment was completed U/s. 143(3) of the Act and no new material has been found by the Ld. AO warranting the reopening of assessment U/s. 147 and the assessee has disclosed fully and truly all the material facts before the Ld. AO. AO has scrutinized the tax audit report which proves that the assessee has not failed to disclose any material facts before the Assessing Officer. The Ld. AO erred in inferring non-deduction of tax mentioned in Form 3CD and has resorted to pass rectification order U/s. 154 of the Act which was later on quashed by the Hon'ble ITAT [2011 (4) TMI 1539 - ITAT VISAKHAPATNAM] In the instant case, it is noticed that notice U/s. 148 of the Act was issued on 20/09/2011 for the AY 2005-06. The action of the AO while initiating the notice U/s. 148 of the Act after a period of four years from the end of the relevant AY 2005-06 which expired on 31/3/2009, should have examined the conditions provided U/s. 147 of the Act should have been satisfied for reopening of the proceedings to be valid. The Assessing Officer having verified the facts from Form 3CD as mentioned in the AO's order proves the contention of the Ld. AR that in the instant case, the assessee has disclosed fully and truly all the material facts in the course of original assessment proceedings before the AO. The Assessment Order also has not established that the assessee has not made disclosure of fully and truly all material facts. Since in the present case, the conditions stipulated u/s. 147 of the Act have not met, the reassessment proceedings could not be sustained. See M/S. SCHWING STETTER INDIA P. LTD. [2015 (6) TMI 497 - MADRAS HIGH COURT] - Decided in favour of assessee.
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