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2017 (4) TMI 471 - AT - Income TaxValidity of reopening of assessment - assessment u/s 153A - Held that:- The original return of income was filed on 6.11.2007 whereas the search had taken place on 11.09.2007. Therefore, the search had taken place prior to the assessee’s filing of the original return of income on 6.11.2007 and therefore, the assessment completed u/s 153A of the Act is a regular assessment and the AO had an opportunity to verify and complete the assessment u/s 153A r.w.s. 143(3) of the Act and the AO is therefore, required to record reasons for reopening of the assessment and further record the finding that there is an escapement of income due to the failure of the assessee to disclose fully and truly all material facts for computation of assessee’s income is also the condition precedent to be fulfilled. Initiation of the re-assessment proceedings by issuance of notice u/s 148, without recording a finding that the escapement of income is due to the failure of the assessee to disclose fully and truly all material facts, is void ab initio. In view of these findings on the validity of the assessment and the assessment being held to be void ab initio, we see no reason to adjudicate the appeal on merit. - Decided in favour of assessee.
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