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2020 (8) TMI 465 - AT - Income TaxValidity of reopening of assessment u/s 147 - reopening after four years - validity of reason to believe - Accrual of income - Whether lapsed freezer deposits cannot be treated as income in the hands of assessee? - HELD THAT:- Admittedly reopening of assessment was initiated after four years and the original assessment order was completed u/s 143(3) of the I.T.Act. Necessary precondition in such situation for reopening the assessment, is that the income has escaped assessment by reason of the failure on the part of assessee to disclose fully and truly all material facts. AO in the reasons recorded for issuance of notice u/s 148 had not mentioned that income has escaped assessment, on account of non-disclosure on the part of the assessee of full and true material facts necessary for completion of assessment. The taxability of lapsed freezer deposit on proportionate was basis of original assessment, whereas in the reassessment, the lapsed freezer deposit as on 31.03.2006 was sought to be taxed as income for assessment year 2009-2010. Therefore, the reassessment was initiated on mere change of opinion. Hence, going by the judicial pronouncements cited supra, we hold that reassessment order for assessment year 2009-2010 is bad in law. Accrual of income - Taxability of freezer deposits received by these assessee from their customers - Issues on merits we notice that the ITAT Cochin bench in its own case [2014 (4) TMI 1227 - ITAT COCHIN] had dismissed the department appeal against the original assessment following its own orders for the earlier years on the ground that the said amount is taxable only in the year of termination and the assessee had already offered such amount to tax in the return of income filed by it. - Decided in favour of assessee.
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