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2014 (7) TMI 307 - ITAT MUMBAIReopening of assessment u/s 147 of the Act – Verification and addition of profit u/s 145A of the Act – Held that:- The assessment has been completed u/s 143(3) after detail scrutiny and examination of records, which is evident from the fact that the AO had made additions on various counts – AO had rejected the assessee’s contention and has made the addition of ₹ 78,34,362 - such an assessment has been sought to be re-opened after the expiry of four years from the end of the relevant assessment year, which is clearly hit by the first proviso to section 147 - on a perusal of the “reasons recorded”, it is seen that nowhere the AO has ascribed any failure on the part of the assessee to disclose truly and fully all material facts necessary for the assessment - This is a condition precedent for acquiring jurisdiction u/s 147, in the case where assessments have been completed u/s 143(3). Where the assessment has been made u/s 143(3) or u/s 147, then no action can be taken for re-opening the case u/s 147, after the expiry of four years from the end of the relevant assessment year - The only exception Carved out from such a limitation is that, income chargeable to tax has escaped assessment by the reason of the failure on the part of the assessee to furnish the return u/s 139 or failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment - The “reasons recorded” should clearly spell out what is the failure on the part of the assessee and it should provide direct link with the material brought on record and the income which has escaped assessment on the reason of failure on the part of the assessee. The limitation provided under the first proviso to section 147, is absolute and there is no escapement of limitation of four years unless the case falls within the saving clause as provided therein - The re-opening cannot be justified on the ground that notice u/s 148, has been approved by a higher authority, as held by the Commissioner (Appeals) - The jurisdiction can be acquired under the provision of the statute and not by sanction of any superior authority - the “reasons recorded”, neither there is any whisper about the failure on the part of the assessee nor there is any material to show on record that there has been any failure on the part of the assessee – thus, the order of the CIT(A) is set aside – Decided in favour of Assessee.
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