Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (3) TMI 149 - AT - Income TaxReassessment - addition of any other income - there is no addition on the very reason for reopening - held that:- Admittedly this reopening was done within 4 years. It is the only prohibition applicable if the action of reopening is admitted u/s 147 after expiry of four years from the end of the relevant assessment year. The AO has found on perusal of the assessment records that there was a case which makes the AO to have a reason to believe that the assessee has inflated the total purchase value of the gold. The reason for reopening the assessment is quite justified as we need not go into the sufficiency of the reasons for reopening. It is only the prima facie reason to believe that income has escaped assessment. If the AO was of the reason that there is a specific disclosure of each material fact and that such disclosure should not be garbled or hidden in the material which has been filed by the assessee to the AO. The assessee must act with candour. The gold was received in the financial year 2003-04 and the relevant purchase has to be entered in the financial year 2003-04 only and not in financial year 2004-0. The profit on sale was shown under the head “other income and adjustment profit on unfixed deal”. The AO treated this as cash credit u/s 68 of the IT Act. Therefore the AO has valid reason to believe that income has escaped assessment because the assessee’s failure to disclose the material facts necessary for assessment for the relevant assessment year. - Decided in favor of revenue.
|