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2021 (7) TMI 1239 - AT - Income TaxReopening of assessment u/s 147 - reasons to believe - HELD THAT:- There is no averment to the effect as to what material facts necessary for assessment were not disclosed by the assessee in the course of original assessment proceedings fully as well as truly. The reasons being justiciable, the AO is expected to record a finding to this effect in the reasons recorded itself. AO has failed on this score. Thus, the reasons recorded when seen on standalone basis do not pass the tests of basic requirement for assumption of jurisdiction u/s 147 of the Act. The notice issued for reopening a completed assessment on the basis of such reasons, is thus, time barred and merge in void. The re-assessment order framed on the basis of a time barred notice, thus, cannot be countenanced in law. Hence, we find merit in the ground raised by the assessee towards lack of jurisdiction u/s. 147 of the Act. Consequently, in our considered opinion, the AO has mis- directed himself in reopening the completed assessment without legal foundation. In this view of the matter, the impugned assessment u/s143(3) r.w. s. 147 of the Act is liable to be set aside and cancelled. As we have held that notice u/s 147/148 of the Act is not sustainable in law, we do not consider it necessary to go into all other legal grounds raised by the assessee in its appeal to support the plea for lack of jurisdiction and also other grounds on merits. - Appeal of the assessee is allowed and appeal of the Revenue is dismissed.
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