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2020 (2) TMI 326 - HC - Income TaxReopening of assessment u/s 147 - “failure of disclosure” of not effecting the TDS - HELD THAT:- The Proviso going by its text and context needs to be construed strictly since the re-opening of an assessment is a power of an extraordinary nature vide ITO vs. MEWALAL DWARKAPRASAD [1989 (2) TMI 4 - SUPREME COURT] The text of the reasons nowhere states that there is failure on the part of the petitioner to disclose the alleged non-deduction of TDS; what is stated is that the petitioner had failed to deduct the TDS; the Proviso employs the expression “by reason of the failure on the part of the assessee … to disclose fully and truly all material facts”; the expression implies some guilt in mind howsoever little it may be, attributable to the assessee; in other words, a failure to deduct the TDS per se does not fit into the said expression as rightly contended by the counsel for the petitioner. Writ petition is allowed; a Writ of Certiorari issues quashing the impugned notice and proceedings and consequently the re-opening of assessment of the income of the petitioner for the Assessment Year 2010-11 is interdicted.
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