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2021 (1) TMI 600 - AT - Income TaxValidity of Reassessment proceedings u/s. 147/148 - Notice issued after the four years from the date of expiry of the relevant assessment year - HELD THAT:- Reason recorded on 20.05.2014 should be considered to be final and absolute reason recorded by the Ld. A.O. for reopening the assessment for assessment year 2009-10 - no allegation is found to be made by the Revenue for not disclosing truly and fully all material facts necessary for the assessment year 2009-10 by the assessee - when the second reason was recorded on 20.05.14, the first reason dated 20.03.14 has lost its force. Had there been no latches on the part of the Revenue in recording reasons by issuing of the Memo on 20.03.14 there would have not been any necessity in issuing the further reason recorded on 20.05.14. Therefore the submission made by the Ld. Counsel appearing for the assessee that the proceeding itself has initiated on the basis of the reasons recorded on 20.05.14 is justified. Whether the subsequent notice dated 20.5.14 issued after the expiry of four years from the date of completion of the relevant assessment year has fulfilled the pre-condition as stipulated by the 1st Proviso of section 147 of the Act by the Revenue? - We find no merit in the reasons recorded for reopening of assessment finally on 20.05.2014, in the absence of any allegation made by Revenue against the assessee for his failure to disclose truly and fully all relevant material facts for assessment for the year under consideration thereby failed to fulfil the pre-condition provided by the 1st Proviso of Section 147 of the Act. The entire proceeding of reassessment dehors the statute, is not maintainable in the eyes of law and hence liable to be rejected. We, therefore, quash the reopening/reassessment proceedings initiated u/s. 147/148 of the Act.- Decided in favour of assessee.
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