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2016 (11) TMI 597 - AT - Income TaxValidity of reopening of assessment - Held that:- The assessing officer has recorded the reasons for re-opening, he has not alleged that there is a failure on the part of the assessee to disclose fully, truly all material facts relevant to complete the assessment in that assessment year. Therefore, as per the proviso to section 147 of the Act when the assessment is re-opened beyond 4 years, it is necessary to allege that there is a failure on the part of the assessee to disclose fully and truly all the material facts to complete the assessment of such assessment year. The A.O. has not alleged that there is a failure on the part of the assessee. No doubt that each case has to be examined by considering the facts and circumstances of the case and also reasons recorded. In the present case, by considering facts and circumstances and also reasons recorded by the A.O. and by following the judicial precedents, we hold that the notice issued by the A.O. by recording the reasons not in accordance with the proviso to section 147 of the Act, thus, the notice is quashed and consequently held that the assessment is invalid. It is to be noted whether full and true disclosure of the facts was done by the assessee, the department cannot re-open the assessment even after there is a loss of revenue or even after legal inference drawn by the assessing authority was erroneous in the first place. Even mere change of opinion by the assessing authority is not enough to re-open the assessment - Decided in favour of assessee
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