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2019 (10) TMI 923 - AT - Income TaxReopening of assessment u/s 147 - assessee had returned a loss in the original return, which has been converted into positive income by virtue of the income, computed during the assessment completed u/s 147- HELD THAT:- Reasons for being satisfied about the escapement of income but need not record a finding that there is escapement of income. By issuance of a notice u/s 148, the AO has only got the jurisdiction to verify the claim of the assessee with regard to the evidence filed and the allowability of such a claim and the AO can give a finding about the escapement of income only after the verification of facts. In the final assessment order u/s 147, there may or may not be addition to the returned income but that would not invalidate the proceedings u/s 147. In a catena of decisions, the Hon'ble High Courts and the Hon'ble Supreme Court have held that at the time of issuance of notice u/s 148, the AO has only to be prima facie satisfied about the escapement of income. As rightly pointed out by the learned DR, the assessee had returned a loss in the original return, which has been converted into positive income by virtue of the income, computed during the assessment completed u/s 147. This would definitely have an impact on the MAT credit to be given to the assessee in the subsequent A.Ys. But, as far as the relevant A.Y is concerned, there is no change in the assessed income and no prejudice is caused to the assessee as far as its taxable income for the relevant A.Y is concerned. Therefore, the additional ground of appeal No. 1.6 is also rejected. As regards the decision of the Hon'ble Delhi High Court in the case of Nalwa Investment Ltd [2010 (8) TMI 40 - DELHI HIGH COURT] we find that it is a case of penalty u/s 271(1)(c) and therefore, it is not applicable mutatis mutandis to the case before us.
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