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2022 (1) TMI 536 - AT - Income TaxReopening of assessment u/s 147 - necessary conditions for initiating and completion - Denial of exemption respect of SEZ Unit at Pithampura /disallowance of deduction u/s 10 (10 AA) - HELD THAT:- Non-disclosure of material facts fully and truly is a serious allegation made by the learned assessing officer for reopening of the assessment however for the purpose of reopening of the assessment he is referring the same material which is been disclosed by the assessee during the course of assessment proceedings before him - reasons given by the learned assessing officer for reopening is merely an arithmetical calculation made by him with respect to the turnover of SEZ unit with respect to the purchase of SEZ unit. He did not look into what kind of manufacturing process that SEZ unit undertakes. We failed to understand that when the assessing officer is clearly saying and using the material, which has been submitted before him during the course of assessment proceedings, then how it can be said that the assessee has failed to disclose truly and fully material facts. There is no reference of any tangible material available with AO for reopening of the assessment which is also mandatory requirement for reopening of the assessment thus the reasons itself says that there is no failure on the part of the assessee to disclose fully and truly all metal facts necessary for its assessment and the allegation of nondisclosure is merely a ritual. In fact when the assessment is reopened beyond the period of four years when originally assessed u/s 143 (3) it is the duty of the assessing officer to show in the reasons recorded for reopening of the assessment that how the information originally submitted by the assessee has resulted into escapement of income by not disclosing certain things/information. Further if such things/information would have been disclosed the assessee would not have been allowed the claim of deduction is claimed by him in the original return of income - we find that the reopening of the assessment made by the learned assessing officer is not on account of the failure on part of the assessee to disclose fully and truly material facts for assessment of income as well as there is no tangible material available with the assessing officer to reopen the assessment. All the catena of judicial precedents cited before us also laid down the same principles - we hold that jurisdiction assumed by the learned assessing officer for invoking the provisions of Section 147 is not valid. Accordingly, ground number 1 of the appeal of the assessee is allowed.
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