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2019 (1) TMI 801 - HC - Income TaxReopening of assessment - notice issued beyond the period of four years - escapement of income should be on account of failure on part of the assessee to disclose truly and fully all material facts - Held that:- Notice of reopening of assessment has been issued beyond the period of four years from the end of relevant assessment year. The additional requirement as per the proviso of Section 147 of the Act that . In the present case, from the reasons recorded, find that no such requirement was fulfilled. In the reasons itself the AO has stated that the record of the assessee was checked and it was found that it is a builder and therefore, to verify the intelligence gathered by Intelligence Wing, it is necessary to carry out thorough and detailed inquiry. Very clearly thus by his own account the Assessing Officer wishes to carry out a fishing inquiry. Reopening of assessment cannot be permitted for carrying out fishing inquiries. AO is proceeding on completely wrong premise. Perusal of the reasons recorded show that he has some prima facie objections to the assessee having developed Ganesh Krupa Housing Society land which according to information received by him did not contain any agreement. When the assessee repeatedly pointed out to the AO before and even after issuing of notice for reopening that he had neither developed any such project during the year of the consideration nor claimed exempt income arising out of such project, it was duty of the AO atleast to prima facie show how such assertion of the assessee was incorrect. He simply cannot claim that full assessment must be permitted even in absence of any prima facie evidence of income chargeable to tax having escaped assessment. For all these reasons, impugned notice is set aside. - Decided in favour of assessee.
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