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2021 (4) TMI 92 - HC - Income TaxReopening of assessment u/s 147 - return was processed under Section 143 (1) - case was selected for scrutiny assessment and under Section 143 (2) of the Act, the notice was issued - assessee failed to disclose true facts with regard to the transactions made with M/s. Brown Pharmaceuticals, which provides a link between his conclusion and materials gathered during the enquiries - as contended it is a case of mere change of opinion and the proceedings could be said to have been initiated mechanically on the basis of the third party information - HELD THAT:- In view of the aforesaid observations made by this Court in the case of Aaradhna Estate Pvt. Ltd. [2018 (2) TMI 1534 - GUJARAT HIGH COURT] and considering the facts and circumstance of the present case, we are of the view that, the true facts with regard to the transactions made with M/s. Brown Pharmaceuticals by the assessee, having been discovered by the assessing officer on the basis of the information received from the investigation wing, the assessing officer could be said to be justified in forming an opinion that the income has escaped assessment. Therefore, the contention with regard to change of opinion and that there was full disclosure at the previous assessment lacks merit. We are of the firm opinion that, there is prima facie tangible material to form an opinion that the income has escaped assessment and the assessee failed to disclose truly and fully all primary facts at the time of the previous assessment, as a result, the assessing officer could not draw proper legal inferences with regard to the alleged transaction. Therefore, as at the relevant time, there was no formation of opinion with regard to the alleged transaction, the assessing officer is not prohibited to form an opinion on the basis of the tangible material that came in his hands by way of information. It cannot be said that, there was no tangible material before the assessing officer and that he proceeded mechanically based on the sole information and the impugned notice is without jurisdiction and contrary to Section 147 - Writ petition dismissed.
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