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2014 (8) TMI 1136 - HC - Income TaxReasons for reopening of the assessment u/s.147 - non disposing of the objections - Held that:- In this case, we find that the order disposing of the objections refers to and relies upon investigation carried out by Sales Tax department, the information put up by Sales Tax department on it's website and the affidavit cum declaration filed by the defaulting parties with the Sales Tax authorities. None of the above facts were even remotely adverted to in the grounds recorded for reopening the assessment. It is settled position in law that the validity of reopening of an assessment can only be tested by the reasons recorded at the time of issuing the notice for reopening an assessment. These grounds for reopening of assessment can neither be substituted and / or supplemented. The reopening of assessment will either stand or fall only upon the reasons recorded before issuing the impugned notice. Thus the order disposing of the objection relying on facts which were not a part of the reasons recorded makes the same unsustainable in law. There can be no dispute with regard to the submissions of the Revenue that an assessment which has been processed under Sec.143(1) of the Act can be reopened as held by the Supreme Court in Assistant Commissioner of Income-tax V Rajesh Jhaveri (2007 (5) TMI 197 - SUPREME Court). However even when an assessment which had been earlier processed under Sec.143(1) of the Act, the jurisdictional requirement for reopening an Assessment is that the Assessing Officer must have reason to believe that income chargeable to tax has escaped assessment, must be satisfied. Besides where the proviso to Section 147 of the Act is invoked, the additional requirement viz. failure to disclose fully and truly all facts necessary for assessment should also be satisfied. Therefore, the aforesaid decision relied upon by the Revenue does not address the grievance of the petitioner. The order disposing of the objections is beyond the reasons recorded for reopening the assessment, we set aside the order dated 23 July 2014, disposing of the objections. We direct the Assessing Officer to dispose of the objections of the petitioner dated 23 July 2014 to the impugned notice dated 21 March 2014 afresh keeping in mind the reasons, recorded for issuing the impugned notice.
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