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2021 (7) TMI 991 - HC - Income TaxReopening of assessment u/s 147 - whether the mandatory requirements have been complied with in the present case or not? - HELD THAT:- It is relevant to consider Explanation 1 to Section 147 of the Act, which states that production before the AO of account books or other evidence from which material evidence could due diligence have been discovered by the AO will not necessarily amount to disclosure within the meaning of the foregoing proviso. Even Explanation 2 to Section 147 provides various circumstances under which reopening of assessment shall be done. Where assessment has been made, but income chargeable to tax has been under-assessed, then also re-assessment can be made. There are numerous circumstances, which all are contemplated for the purpose of reopening of assessment and once, the AO has reason to believe that the income chargeable to tax has escaped assessment on account of the fact that the assessee has not disclosed fully and truly all material facts necessary for his assessment, then initiation u/s 147 shall be made beyond the period of four years and within six years. This being the scope of Section 147 for reopening of assessment, this Court do not find any acceptable reason for the purpose of interfering with the reopening proceedings initiated by the authorities competent and it is for the petitioner to participate in the assessment/re-assessment proceedings and defend his case in the manner known to law.
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