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2023 (8) TMI 1467 - ITAT MUMBAIValidity of reassessment proceedings - notice issued beyond four years - pre-requisite under the First Proviso to section 147 - reason to believe or suspect - AO received certain information from Investigation Wing regarding acceptance of alleged bogus unsecured loans by the assessee - failure on the part of the assessee to disclose the material facts fully and truly or not? - HELD THAT:- AO on the basis of examination of Balance Sheet of M/s. Mangal Murti Impex Pvt Ltd has come to the conclusion that the income in the hands of the assessee has escaped assessment. However the reasons which have been recorded by the AO for reopening of the assessment do not disclose that the assessee had failed to disclose fully and truly all material facts necessary for the purpose of assessment. In fact we notice that during the first round reassessment, the assessing officer has called for the details pertaining to the loan transactions and that the assessee has submitted the loan details including the loan confirmation, Bank statement, and the return of income of M/s. Mangal Murti Impex Pvt Ltd. There is merit in the argument that there is no failure on the part of the assessee to disclose fully and truly all material facts necessary for the purpose of assessment. We in this regard notice that the reasons recorded do not allege any failure on part of the assessee to disclose material facts which is the basis on which the reopening is done. In the reasons recorded, AO has elaborated only about the survey proceedings of JPV Group and the enquiry done with regard to the loan transactions of JPV group with certain non-genuine parties including M/s. Mangal Murti Impex Pvt Ltd. The Assessing Officer has not mentioned about any new material that has been brought on record with regard to the loan transaction basis which assessee's case is reopened. A mere recording that "I have reason to believe that the income chargeable to tax above Rs 1 Lakh has escaped assessment for the A.Y. 2011-12 in the case of the said assessee within the meaning of section 147 of the Income Tax Act, 1961" does not mean that the restriction imposed by the proviso to Section 147 of the Act is fulfilled by the Assessing Officer. Thus in the absence of any allegation of any failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment in the notice for reassessment issued after the expiry of four years from the end of the relevant assessment year under section 148 of the Act, is barred by limitation prescribed in proviso to section 147 of the Act, without jurisdiction - Decide in favour of assessee.
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