Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (2) TMI 516 - AT - Income TaxReopening of assessment - Determination of income chargeable to tax from and out of the Composite Income - whether miscellaneous income would form part of the composite income for the purpose of section 33AB of the Act was fully investigated by the AO while concluding the assessment proceedings u/s 143(3)? - Held that:- Admittedly prior to the initiation of re-assessment proceedings u/s 147 of the Act an order of assessment for the relevant assessment year had been passed u/s 143(3) of the Act. The re-assessment proceedings were initiated admittedly beyond the period of four years from the end of the relevant assessment year. In these circumstances for valid initiation of re- assessment proceedings u/s 147 of the Act the conditions laid down in the proviso to section 147 of the Act had to be satisfied, viz., escapement of income should be as a result of the assessee’s failure to disclose truly and fully material facts necessary for assessment/income for the relevant assessment year. Since this condition has not been satisfied in the present case, the CIT(A) was fully justified in concluding that re- assessment proceedings were not validly initiated. Since the initiation of re- assessment proceedings have been held to be invalid and therefore the reassessment order is liable to annulled, we do not wish to deal with other grounds with regard to the re-assessment proceedings having been initiated on a change of opinion and the arguments that no notice u/s 143(2) of the Act in the re-assessment proceedings were issued and therefore re-assessment proceedings are invalid. We also do not wish to go into the question as to whether the disputed items of income could form part of the composite income of the assessee or not for the purpose of Rule 8(1) of the Rules. - Decided against revenue
|