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2017 (8) TMI 74 - AT - Income TaxReopening of assessment - reasons to believe - Held that:- There was no mention in the recorded reasons that the escapement of chargeable income from tax was due to omission or failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment. Therefore, the notice for re-opening was quashed. Besides, we concur with the submissions of the Ld. AR that no new facts have come to the knowledge of the AO justifying assumption of jurisdiction after four years. The orders of the authorities below also nowhere reveal as to what new facts or material came to their notice which led them to make re-assessment in the instant case. A bare reading of first proviso to section 147, shows that the law merely casts a duty on the assessee to disclose fully and truly all material facts necessary for his assessment which has been done in the instant case. The duty of the assessee does not extend beyond the disclosure of all material facts necessary for his assessment. It is thereafter the duty of AO to properly apply its mind on the facts and law. Accordingly, the assumption of jurisdiction u/s 147 is unsustainable in the instant case in view of the decision of Hon’ble Delhi High Court in the case of Purolator India Ltd.(2011 (11) TMI 365 - DELHI HIGH COURT ) - Decided in favour of assessee.
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