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2014 (11) TMI 892 - HC - Income TaxValidity of notice for reopening of assessment u/s 148 Notice issued beyond the period of 4 years Failure on the part of assessee to fully and truly disclose all material facts necessary for assessment - Held that:- Even according to the AO the assessee had furnished the details in support of its claim u/s 80IA of the Act and the same were subject of examination before passing assessment order dated 31 January 2003 u/s 143(3) of the Act - according to the AO himself there was due application of mind on the part of the AO while passing an order u/s 143(3) of the Act and seeking to reopen the assessment on the same facts would amount to change of opinion - the other condition precedent as found in the first proviso to Section 147 of the Act viz. failure to disclose truly and fully all material facts necessary for assessment is not satisfied as it is clear by virtue of letter dated 6 August 2007 in which the reasons which were communicated specifically refer to the material having been furnished and examined by the AO while passing the assessment order in regular proceedings it could not be understood as to on what basis the AO states that whenever a notice beyond the period of 4 years from the end of the relevant AY is issued, it is implicit in such a notice that there was failure on the part of the assessee to fully and truly disclose all material facts necessary for assessment - it requires application of mind by the AO before he issues notice for reopening the assessment which is done after recording his reasons. It is the reasons which indicate not only the application of mind but also the basis for issuing the notice - It is on the basis of recorded reasons that the objections to the same are filed and in the absence of it being recorded it would be impossible for the assessee to object to it - Besides not furnishing explicit reasons would enable addition to reasons recorded on the ground that it is implicit in the reasons recorded - Revenue officers would do well to always remember that reopening of an assessment cannot be done in such casual manner - A reopening notice carries grave consequence for the assessee of subjecting him to reassessment proceeding and also leading to uncertainty in respect of the completed assessments thus, the notice issued u/s 148 is to be set aside Decided in favour of assessee.
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