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2016 (7) TMI 135 - AT - Income TaxValidity of reopening proceedings u/s 147 - Held that:- It is the duty of AO to show prima-facie, and establish in the reason recorded, that income chargeable to tax has escaped assessment by the reason of failure on the part of assessee to disclose fully and truly all material fact necessary for assessment. In the instant case there is no allegation or stipulation showing that income chargeable to tax has escaped assessment due to failure on the part of assessee to disclose fully and truly all material fact necessary for assessment. Relied on Delhi High Court in the case of CIT v. Vishishth Chay Vyapark Ltd. (ITA No.1108-1109/2010)wherein inter-alia it was held that "Merely having a reason to believe that income had escaped assessment is not sufficient to reopen assessments beyond 4 year period. The escapement also be occasioned by the failure on the part of the assessee to disclose material facts, fully and truly. This is a necessary condition for overcoming the bar set up by the proviso to Sec. 147. If this condition is not satisfied, the bar would operate and no action under Section 147 could be taken.” In view of above, we are inclined to hold that AO did not assume valid jurisdiction for initiation of proceedings u/s 147 beyond 4 years. Hence, we quash the same - Decided in favour of assessee.
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