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2012 (11) TMI 225 - AT - Income TaxValidity of reopening of assessment u/s 147/148, earlier framed u/s 143(3), after expiry of four years from end of relevant AY – alleged that investment in land was not disclosed in balance sheet based on incriminating document found during search – assessee contended that fact of purchase of plot was disclosed in return on Income and reasons has been selectively recorded so as to increase the time limit from 4 years to 6 years – Held that:- When the assessee has recorded a transaction in its books of accounts as evident from balance sheet at year end of 2000 and 2001 and the assessment is completed u/s 143(3), the assessee has disclosed primary facts relating to the transaction. The assessee’s original assessment having been completed u/s 143(3), no action of reassessment can be taken after the expiry of 4 years from the end of the relevant AY unless any income chargeable to tax has escaped on the part of the failure of the assessee to disclose fully and truly all material facts necessary for the assessment. Assessing Officer has recorded the reasons in a manner to attract time limit of 6 years by recording an erroneous reason that this transaction has been kept outside the books of accounts by the assessee. It implies that the reasons recorded lack bona fide in terms of recording the correct facts. Since the reasons have been recorded without application of mind and proper bona fides, they are not tenable. Thus, the reassessment proceedings initiated on the basis of untenable reasons are ab initio void and are quashed accordingly – Decided in favor of assessee.
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