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2021 (12) TMI 495 - AT - Income TaxReopening of assessment u/s 147 - eligibility of reason to believe - bogus purchases addition - HELD THAT:- The reasons recorded for issuing notice provide the link between conclusion and evidence. The reasons recorded must be based on evidence. The Assessing Officer must disclose in the reasons as to nature of fact and material not disclosed by the assessee fully and truly which was necessary for assessment for that assessment year. On perusal of reasons recorded by AO which are we find that the AO has not specified that there was failure on the part of assessee to disclose all material facts necessary for its assessment during the course of regular assessment proceedings. As mentioned in Para 9 & 10 above, it is evident that a specific query was raised by the Assessing Officer with respect to purchases claimed by the assessee and the same was appropriately replied to by the assessee. The reply having been found satisfactory the assessment was completed accepting the claim of purchases. Once again the very same issue is sought to be raised for the purpose of reopening which is otherwise not permissible in law as the same is based on a change of opinion. It cannot be said that there was any failure on the part of the assessee to fully and truly disclose all the material facts. The present case, in our opinion, could be said to be squarely covered by the decision of the Supreme Court rendered in the case of CIT vs. Kelvinator India [2010 (1) TMI 11 - SUPREME COURT] No case for Revenue that assessee had failed to disclose all material facts fully and truly, the impugned notice under Section 148 of the Act issued to the assessee for the purpose of reopening of the assessment beyond the period of four years is not sustainable in law. Therefore, the case of the assessee is covered by proviso to section 147 of the Income Tax Act, and the reopening being bad in law, we hereby quash the assessment order passed u/s 143(3) r.w.s 147 of the Act. The ground nos.1 & 2 raised by assessee are allowed.
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