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2023 (3) TMI 94 - AT - Income TaxReopening of assessment u/s 147 - invocation of reassessment proceedings based on non-existing provisions of the law, i.e., 147(C) - notice issued u/s 148 is time barred as issued after 4 years from the end of the relevant assessment year where the case has already been assessed u/s 143(3) - DR submitted that the mention of non-existent provision of section 147(C) of the Act is a clerical mistake which is curable u/s 292B - HELD THAT:- AO, in the first page of reasons mentioned in column 7 that provisions of section 147(C) is applicable which is non-existent in the statute book for AY 2010-11. This apparently shows non-application of mind by the AO while filling proforma in a mechanical manner and the ld. ACIT and Ld. PCIT also approved the same in a mechanical manner. So far as the contention of the ld. Sr. DR that this defect is curable u/s 292B of the Act is concerned, this contention was decided in the case of Madhu Apartments India Pvt. Ltd., [2021 (2) TMI 709 - ITAT DELHI] the relevant part of which has already been reproduced in the earlier part of this order since the same was referred to and included in the relevant part of the order of the ITAT in the case of Omkam Developers Ltd. (2021 (5) TMI 414 - ITAT DELHI]. Therefore, we hold that the impugned reassessment proceedings and the impugned reassessment order deserves to be quashed and we hold so. Validity of initiation of reassessment proceedings u/s 147 - HELD THAT:- As per requirement of mandatory provisions i.e., proviso to section 147, the AO is required to make specific allegation to identify the particular facts not fully and truly disclosed by the assessee and compliance of the said mandatory provision solely depends on verification of facts/material disclosed by the assessee in the course of assessment proceedings and from perusal of the reasons recorded. In a case the AO did not disclose anything on the evidences furnished during the original assessment proceedings and failed to identify the particular facts or material which were not fully and truly disclosed by the assessee, then, the initiation of reassessment proceedings beyond the period of four years from end of relevant assessment year has to be held as void ab initio and bad in law as per various judgements including the judgement of the Hon’ble jurisdictional High Court of Delhi in the case off Dushyant Kumar Jain (2016 (5) TMI 113 - DELHI HIGH COURT) and Usha International Ltd. (2012 (9) TMI 767 - DELHI HIGH COURT ). The initiation of reassessment proceedings u/s 147 of the Act and issuance of notice u/s 148 of the Act is void ab initio and bad in law being initiated without complying with the mandatory provisions of first proviso to section 147. Thus we have quashed the reassessment proceedings and reassessment order while adjudicating the legal ground No.3 of the assessee, no additions made by the AO could be held as sustainable.
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