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2021 (7) TMI 955 - HC - Income TaxReopening of assessment u/s 147 - Reappreciation of books of accounts and records - expiry of time limit for making reopening of assessment under Section 148 - Proceedings initiated beyond the period of four years and during the fag end of sixth year - change of opinion - HELD THAT:- Admittedly, the assessment order under Section 143(3) of the Act was passed on 27.07.2009. Reopening of assessment was initiated beyond the period of four years, but within a period of six years. The order furnishing reasons for reopening issued at the first instance by the Assessing Officer was ambiguous and the reasons were not made clear. This Court directed the second respondent therein to consider the objections raised by the petitioner, afford an opportunity of personal hearing and pass orders. Thereafter, the petitioner was provided with an opportunity and the petitioner also had admittedly availed the same. The order pursuant to the directions issued by this Court was passed by the second respondent in proceedings dated 02.03.2015 and perusal of the order would reveal that the assessee failed to disclose certain amount in the tax calculation and subsequently for the taxation. Hence, the said discrepancy was found as a failure on the part of the assessee to disclose fully and truly all material facts Assessee failed to disclose certain amount, which resulted failure on the part of the assessee to disclose fully and truly all materials. The very ground taken by the assessee that it has furnished/disclosed fully and truly all material facts deserves no merit consideration. The second respondent could able to ascertain certain material facts establishing failure on the part of the assessee to disclose the facts fully and truly. Regarding the ground of availability of fresh material for reopening of assessment proceedings, this Court is of the considered opinion that Explanation 2(c) to Section 147 would be relevant - In the present case, Explanation 1 and Explanation 2(c) to Section 147 are to be considered. Mere production of books of account and the details by the assessee are one aspect of the matter and even with reference to such books of accounts and materials, if the Assessing Officer could able to discover some new information or materials, which provided cause for the Assessing Officer to invoke Section 147 of the Act or has reason to believe, then also such reopening proceedings are permissible. Explanation 2(c)(i) states that where an assessment has been made, but income chargeable to tax has been under-assessed, then also reopening of assessment is permissible, in cases where assessment order has been already passed based on the materials available on record. In the event of identifying under-assessment based on the very same materials, then also reopening of assessment is possible. Regarding the under-assessment there need not be new materials. Even based on the available materials, if the competent authority could able to identify any under-assessment, then also power under Section 147 shall be invoked by the competent authority. Thus where it is established that the assessee failed to disclose certain amount in the tax calculation and subsequently for the taxation, there is a reason to believe that there was a failure on the part of the assessee to disclose fully and truly all material facts. This being the factum, the initiation cannot be construed as change of opinion warranting interference from the hands of this Court. - Decided against assessee.
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