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2020 (11) TMI 402 - AT - Income TaxReopening of assessment u/s 147 - nature of deemed escapement of income and also there is contradictions in the proforma for obtaining sanction u/s 151 - unsecured loan creditors - HELD THAT:- Original assessment was framed u/s 143(3) on 10th March, 2014 determining the income at ₹ 20,06,714/- as against the returned loss of ₹ 20,53,019/- and wherein the issue of unsecured loan creditors was duly considered and accepted on the basis of various supporting documents filed at the time of original assessment and since there is no allegation in the reasons recorded that there is failure on the part of the assessee to disclose fully and truly all material facts necessary for completion of the assessment, therefore, the notice issued u/s 148 after a period of four years from the end of the relevant assessment year in the instant case is illegal and invalid being without jurisdiction. AO has proceeded to reopen the assessment on the basis of wrong appreciation of facts by mentioning that the assessment is proposed to be made for the first time whereas the facts stood otherwise, i.e., the assessment was, in fact, completed u/s 143(3) therefore, there is complete non-application of mind by the AO as well as by both the superior authorities. Approval has been given in a mechanical manner without appreciating the facts properly and there is complete non-application of mind by the superior authorities. On this score also, the reassessment proceedings have to be quashed and the decision relied on by the ld. DR in the case of Sonia Gandhi [2018 (9) TMI 720 - DELHI HIGH COURT] is not at all applicable to the facts of the present case in view of the glaring mistake and omission that has been committed by the AO which was not looked into by the superior authorities - we quash the reassessment proceedings initiated u/s 147/148. The various other legal grounds raised by the ld. Counsel challenging the validity of the reassessment proceedings become academic in nature in view of the above discussion. Since the assessee succeeds on this legal ground, the grounds challenging the addition on merit also become academic in nature and, therefore, are not being adjudicated. - Decided in favour of assessee.
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