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2019 (10) TMI 74 - AT - Income TaxReopening of assessment u/s 147 - validity of reasons to believe - HELD THAT:- There is nothing on the basis of which it can be said that there was failure on the part of the assessee to disclose all material facts fully and truly. Infact we are unable to even find any allegation by the AO to the effect that there was failure on the part of the assessee to disclose all material facts fully and truly. Even at the time of hearing before us, it was not the case of the DR that the assessee has failed to disclose the material facts fully and truly. We hold that Revenue has failed to show that there was failure on the part of the assessee to disclose all material facts fully and truly. When the assessee has filed a return u/s 139 or in response to sections 142(1) or 148 of the I.T.Act and when an assessment order u/s 143(3) or u/s 147 has already been passed then the assessee enjoys statutory protection under proviso to section 147 from any action u/s 147 after the expiry of four years from the end of the relevant assessment years; unless income chargeable to tax has escaped assessment by reason of failure on the part of the assessee to fully and truly disclose all material facts necessary for his assessment for that assessment year. Onus is on Revenue to show that there was failure on the part of the assessee to fully and truly disclose all material facts necessary for his assessment for that assessment year and in the instant case, Revenue has failed to discharge this onus. When it is not the case of the Revenue that there was failure on the part of the assessee to disclose all material facts fully and truly, Revenue cannot violate the statutory protection enjoyed by the assessee under proviso to section 147 of the Act. Statutory protection enjoyed by the assessee under proviso to section 147 of the Act was wrongly violated by Revenue. Therefore, we dismiss all the grounds of appeal in this appeal filed by the Revenue, and hold that the assumption of jurisdiction u/s 147 and initiation of proceedings u/s 147 r.w.s. 148 of the Act was erroneous in law For Coming to this conclusion, we take support from the order of the Hon’ble jurisdictional High Court in the case of Bharti Infratel Limited vs. DCIT [2019 (1) TMI 1072 - DELHI HIGH COURT] held that when the proviso applies, the Assessing Officer must satisfy himself and state that there has been failure on the part of the assessee to fully and truly disclose all material facts necessary for assessment - assessment proceedings u/s 147 / 148 cancelled - Decided in favour of assessee.
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