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2014 (5) TMI 225 - HC - Income TaxValidity of notice u/s 148 of the Act – Re-opening of assessment - Bar of limitation – Held that:- The notice of reopening is beyond the period of four years, it is incumbent upon the AO to have the reasonable belief that there was failure on the part of the assessee to fully and truly disclose all material facts necessary for the purpose of assessment - It is emerging clearly from the reasons recorded while issuing the notice of reopening, no mention is made to the fact that on the basis of any new material, the AO had any reason to believe that the petitioner had not fully and truly disclosed all material facts – the notice is based on the material which was very much available before the AO and he had examined the very issue threadbare while framing original assessment. Relying upon Sun Pharmaceutical Industries Ltd. v. Dy. CIT [2012 (10) TMI 403 - Gujarat High Court] - the notice of reopening of an assessment must be adjudged on the basis of the reasons recorded while issuing the notice - Reasons other than those on the basis of which notice was issued cannot be considered while examining the validity of such notice and the same essentially and materially requires to be dealt on the basis of recorded reasons - there was no failure of the assessee in furnishing the information at the time of original assessment, where the transactions were treated in the nature of capital gain after making the detailed inquiry - in absence of any failure of disclosure of fully and truly of all the material facts on the part of the assesee, issuance of notice of reopening u/s 148 of the Act is not sustainable – Decided in favour of Assessee.
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