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2018 (2) TMI 347 - AT - Income TaxInitiation of re-assessment proceedings - validity of reopening of assessment - proof of escapement of income - Held that:- AO for initiating the re-opening of the assessment proceedings beyond the period of 4 years from the end of the relevant assessment year has to establish that there was escapement of income chargeable to tax because of the failure of the assessee to disclose fully and truly the material facts necessary for the assessment. Neither in the reasons recorded for reopening the assessment nor in the order of re-assessment u/s147 of the Act. The AO has not brought out facts to show any omission on the part of the assessee to disclose fully and truly the material facts when the original assessment was completed. We are of the view that the re-opening of the completed assessment u/s 143(3) beyond the period of 4 years cannot be justified. We hold that the re-opening of the assessment is beyond the time contemplated by the proviso to sec.147 of the Act and therefore, initiation of re-assessment proceedings is held to be bad. The decisions cited by the assessee referred to in paragraph 9 and 10 support the conclusions that reassessment proceedings are not valid in law. For the reasons given above, we allow the grounds raised in the cross objection and hold that the reassessment proceedings are not validly initiated. Therefore order of the reassessment is liable to be annulled. Since the re-assessment order has has been annulled, the grounds raised by the revenue in its appeal does not require any adjudication. - Decided against revenue
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