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2015 (7) TMI 606 - AT - Income TaxValidity of reopening of assessment - whether there is a bar on reopening all the assessments which was completed u/s. 153A/153C r.w.s. 143(3) ? - unreported gross receipts - Held that:- There is escapement of income while framing original assessment order u/s.153C r.w.s 143(3) of the Act. It is apparent that the omission of the assessee to bring it to the Assessing Officer’s notice those particulars of seized material, will amount to omission to disclose fully and truly all materials facts necessary for its assessment. The assessee having failed to draw the attention of the Assessing Officer regarding seized documents, it cannot be said that there is no violation of provisions of the Act. Further, when no opinion has been expressed in the assessment order and no details or explanation in relation to the seized document has been called for by the Assessing Officer, it is not possible to accept the contention of the assessee that the Assessing Officer has applied his mind to the said aspect. In the light of the aforesaid discussion, we are of the view that in the light of the reasons recorded by the Assessing Officer, there was sufficient material for Assessing Officer to form the requisite belief that income has escaped assessment for the assessment year under consideration. The assumption of jurisdiction under section 147 by issuance of notice under section 148 of the Act is valid and legal and as such no case is made out for intervention by this Tribunal. Therefore, the assessee fails in this ground. This ground is rejected. Whether the reassessment were time barred as per provision u/s.149? - Held that:- The time limit within which the notice under section 148 can be issued, as provided in section 149 has also been made in applicable by the non obstante clause. Section 151 which requires sanction to be obtained by the Assessing Officer by issue of notice to reopen the assessment under section 148 has also been excluded in a case covered by section 153A/153C of the Act. The time limit prescribed for completion of an assessment or reassessment by section 153 has also been done away with in a case covered by section 153A. With all the stop having been pulled out, the Assessing Officer under section 153A/153C has been entrusted with the duty of bringing to tax the total income of an assessee who case is covered by section 153A/153C, by even making reassessments subject to provision u/s.153B of the Act. Accordingly, the contention of the ld. Authorised Representative for assessee is that the assessment is time barred is rejected. It is not appropriate to consider the entire unaccounted gross receipts as income of the assessee. The assessee has to incur certain expenditure for the unaccounted receipts also. Being so, in our opinion, it is appropriate to consider only gross profits on this unaccounted contact receipts as the income of the assessee. The Assessing Officer is directed to adopt the last three years average gross profits rate disclosed by the assessee in immediate preceding years to determine the income from unaccounted contract receipts. Further, we make it clear that the assessee shall be given an opportunity to go through the seized materials on the basis of which the Assessing Officer determine the unaccounted gross receipts of the assessee before arriving the unaccounted gross contract receipts. With these observations, this issue for limited purpose is remitted back to the file of the Assessing Officer for quantification of income in all these three assessment years. - Decided partly in favour of assessee for statistical purposes.
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