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2014 (1) TMI 1128 - AT - Income TaxValidity of re-opening of assessment u/s 147 - Unexplained cash credit - power of ITAT to entertain new Ground - Held that:- Following ITO vs. Smt. Gurinder Kaur [2006 (6) TMI 144 - ITAT DELHI-A] - Even de hors Rule 27 of the ITAT Rules, it is open to the respondent in an appeal before the Tribunal to raise a new ground in defence of the Order appealed against - Even assuming that Rule 27 is not strictly applicable, the Tribunal has inherent powers u/s 254 (1) of the Act to entertain the argument of the Respondent which amounted to a new ground; that Rule 27 is not exhaustive of the powers of the Tribunal; and that it is merely not procedural in character and does not, in any way, circumscribe or control the powers of the Tribunal under the Act - The application of the assessee under Rule 27 is maintainable. There was no tangible material with the Assessing Officer to conclude that there was escapement of income from assessment - The reasons recorded do not have any link, much less any live link with the formation of belief of escapement of income - The reopening of the completed assessment, in view of the full disclosure of the material facts relevant to the assessment of the assessee for Assessment Year 2004-05, was nothing other than a mere change of opinion, which is impermissible in lawThe reasons recorded do not lay out any failure on the part of the assessee to disclose fully and truly any material fact necessary for its assessment for Assessment Year 2004-05 – For reopening the assessment, the proviso to Section 147 comes into play - Once the assessee had duly disclosed all material facts necessary for its assessment fully and truly before the Assessing Officer in the scrutiny assessment proceedings, for Assessment Year 2004-05, no action ought to have been taken u/s 147 of the Act, as envisaged by the proviso to Section 147 – Decided against Revenue.
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