Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (2) TMI 673 - AT - Income TaxReopening of assessment u/s 147 - eligibility of reasons to believe - mandatory requirements for re-opening the assessment have not been complied with by the AO - assessment had been reopened on account of the survey findings that the assessee had entered into the two JDAs and the income accruing to the assessee out of these JDAs had not been offered to tax and the assessee had not provided any documentary evidence that the transfer of the property to the developer had happened at a later date - HELD THAT:- Assessing Officer has power to reopen the assessment, provided there is "tangible material" to come to the conclusion that there is escapement of income from assessment and the reasons must have a live link with the formation of belief. In the present case, there is no tangible material. The issuance of the impugned notice u/s.148 is nothing but mere change of opinion. In absence of any new tangible material available with the A.O., it is not open to the A.O. to change his opinion by issuing the notice of re-assessment. Being so, in our opinion the reopening of assessment which is already concluded under Section 143(3) of the Act on 26.03.2010 cannot be reopened without any allegation by the Assessing Officer that there was non-disclosure of true and correct facts by the assessee while framing the original assessment. In order to assume jurisdiction under Section 147 where assessment has been made under sub-section (3) of section 143, two conditions are required to be satisfied. Assessing Officer must have reason to believe that the income chargeable to tax has escaped assessment; Such escapement occurred by reason of failure on the part of the assessee either to make a return of income under section 139 or in response to the notice issued under sub-section (1) of Section 142 or Section 148 or to disclose fully and truly all the material facts necessary for his assessment for that purpose. The power to assess or reassess income under section 147 of the I.T. Act cannot invoked routinely . During the course of original assessment proceedings, the issue for which the assessment is sought to be reopened was subject matter of examination by the A.O. Thus, it is clear that the assessee had disclosed all the material facts during the regular assessment proceedings. Therefore, it cannot be alleged that there is a failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment - we hold that the reassessment proceedings is bad in law and we quash the same.- Decided in favour of assessee.
|