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2014 (12) TMI 3 - AT - Income TaxValidity of reopening of assessment u/s 147 – failure on the part of assessee to disclose fully and truly all material facts or not - Held that:- Assessee has not only filed its return of income for the AYs as per section 139, but also, assessments in case of assessee have been completed u/s 143(3) of the Act - at least for the AYs 2002-03 and 2003-04, the first proviso to section 147 comes into play as the reopening of assessment in case of assessee has been made after expiry of four years from the end of the relevant AYs - there is no allegation made by AO that alleged escapement of income is attributable to failure on the part of assessee to disclose fully and truly all material facts required for his assessment for the AYs under consideration - assessee is consistently following the same accounting policy so far as debiting the differential amount of interest payable to IDBI and IFCI to the ‘interest suspense account’ - assessee has made full and true disclosure of all material facts relating to the reduction of interest and transferring it to the ‘interest suspense account’ - it cannot be said that there is failure on the part of assessee in disclosing fully and truly all material facts for his assessment which could have enabled the AO to reopen assessment after expiry of four years from the end of the relevant AYs - in the reasons recorded also, AO has neither made any allegation that there is failure on the part of assessee in making full and true disclosure of material facts for his assessment nor he has specifically pointed out the issues/subjects on which according to AO, assessee has not made full and true disclosures – the reopening of assessment beyond four years from the end of relevant AY is in violation of provision contained u/s 147 read with first proviso - For this reason alone, initiation of proceeding at least for the AYs 2002-03 and 2003-04 is without jurisdiction and consequently assessment order passed is void ab-initio – Decided in favour of assessee.
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