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2014 (2) TMI 610 - AT - Income TaxReopening of Assessment u/s 147 of the Act Notice u/s 148 issued - Held that:- The decision in Hindustan Lever vs. Assistant Commissioner of Income Tax[2004 (2) TMI 41 - BOMBAY High Court] followed - the Assessing Officer must disclose in the reasons as to which material facts were not disclosed by the assessee fully and truly, which was necessary for assessment of that assessment year to establish vital link between the reasons and evidence - the vital link is to safeguard against arbitrary reopening of the concluded assessment - the assessing officer has not received any further evidence or information so as to say that the assessee at the time of making original assessment did not disclose truly and wholly the material facts which has come to the notice to the AO later on and due to which the income chargeable to tax has escaped assessment thus, the initiation of reassessment proceedings by issuing notice u/s 148 of the Act for the assessment year is barred by limitation as the original assessment was made u/s 143(3) of the Act - there is no evidence to establish that the assessee failed to disclose fully and truly the material facts necessary for the assessment thus, the order set aside Decided in favour of Assessee. Validity of Reassessment Held that:- No new material has come to the notice of the Assessing Officer for initiating the reassessment proceedings and the reassessment has been initiated after expiry of more than 4 years on the same materials which was furnished by the assessee, at the time of falling the return - there is nothing to show that alleged escape of income was owing to the failure on the part of the assessee to disclose material facts truly and fully - No tangible material has been brought on record which has come to the notice of the Assessing Officer after the return was processed u/s 143(1) of the Act thus, the action of the Assessing Officer to initiate reassessment proceedings is not in accordance with law - the contention of the assessee is accepted that the initiation of reassessment proceedings is not valid Decided in favour of Assessee.
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