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2013 (1) TMI 188 - HC - Income TaxReopening of assessment - ITAT declared the reassessment as invalid as notice was issued beyond a period of four years - Held that:- As original assessment was accepted u/s 143(1) without any scrutiny. That being the position, the requirement of proviso to section 147 that in order to reopen the assessment beyond period of four years from the end of relevant assessment year, the condition of income having escaped assessment due to the failure on part of the assessee to disclose truly and fully all material facts, was not required to be established. Revenue even beyond four years could have reopened the assessment without satisfying such a requirement when the original assessment was not made after scrutiny. So much is plainly clear from statutory provisions Tribunal therefore, committed an error in striking down the reassessment merely on this ground. Notice u/s 148 was issued without issuing notice u/s 143(2) - Held that:- The return filed by the petitioner was not taken in scrutiny. No assessment, thus, took place. The Assessing Officer without any assessment, merely issued an intimation under section 143(1) of the Act accepting such return. In that view of the matter, it cannot be stated that the Assessing Officer formed any opinion with respect to any of the aspects arising in such return. In such a case, scope for reopening such assessment under section 147 of the Act as compared to an assessment which was previously framed under section 143(3) of the Act, whether beyond or within four years from the end of the relevant assessment year, is substantially wider. As decided in ACIT Versus Rajesh Jhaveri Stock Brokers P. Limited [2007 (5) TMI 197 - SUPREME COURT] so long as the ingredients of section 147 are fulfilled, the Assessing Officer is free to initiate proceeding under section 147 and failure to take steps under section 143(3) will not render the Assessing Officer powerless to initiate reassessment proceedings even when intimation under section 143(1)- Thus Tribunal committed a legal error on both the counts - in favour of revenue.
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