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2020 (8) TMI 171 - AT - Income TaxReopening of assessment u/s 147 - Validity of reasons to believe - HELD THAT:- Reasons recorded by the ld. AO should speak for itself and there cannot be any addition or alteration to the said reasons and the understanding of the AO at the time of recording reasons cannot be supplemented / strengthened by the subsequent investigations carried out by the department or by subsequent materials that were made available to the department. What is relevant at the time of recording the reasons by the ld. AO is that he should have fresh tangible material without any change of opinion , to enable him to have a live link to form a belief that income of the assessee had escaped assessment and if the reopening is made beyond a period of four years from the end of the relevant assessment year then, it is the incumbent duty on the part of the ld. AO to duly record the fact in the reasons recorded itself that there was a clear failure on the part of the assessee to make full and true disclosure on the facts that are necessary and material for the purpose of assessment before the ld. AO in the original assessment proceedings. In the instant case, that statutory condition has not been complied with by the ld. AO. Hence we deem it fit to quash the entire re-assessment proceedings as void ab initio. We hold that the assumption of jurisdiction in the instant case by reopening the case by the ld. AO is not sustainable in law. Accordingly, the cross objection preferred by the assessee in this regard are allowed. Since, re-assessment framed by the ld. AO is quashed, the adjudication of the various arguments made by the Counsels from both the sides on merits of case in the appeal of the revenue becomes academic.
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