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2019 (12) TMI 901 - AT - Income TaxReopening of assessment u/s 147 - recomputing the book profits of the assessee us/ 115JB - HELD THAT:- As per the first proviso to sec. 147 of the Act an action u/s 147 can be taken in a case where an assessment was already completed u/s 143(3) of the Act within the period of 4 years from the end of relevant asst. year. However, if there is failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for that assessment. year then the notice u/s 148 of the Act can be issued within a period of 6 years from the end of the relevant asst. year. The question therefore is as to whether it can be said in the present case that there was a failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment. In this regard it is clear from the perusal of the order passed u/s 143(3) of the Act that same item which have not been added to the book profits u/s 115JB were added in the originally concluded assessment. proceedings u/s 143(3) of the Act when the total income of the assessee was computed under the normal provisions of the Act. Therefore, it cannot be said that there was any failure on the part of the assessee to fully and truly disclose all material facts necessary for his assessment. There was no failure on the part of the assessee to fully and truly disclose material facts, the reopening of the assessment u/s 147 beyond the period of 4 years is not valid. Consequently the order of re-assessment u/s 147 of the Act is liable to be annulled on this ground and is hereby annulled. In view of the decision on the aforesaid ground on the validity of initiation of proceedings u/s 147 of the Act, the issues on merits of the appeal of the assessee are not being considered.
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