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2022 (2) TMI 879 - HC - Income TaxValidity of Reopening of assessment u/s 147 - certain income, which are liable for payment of tax, has escaped the assessment and it warrants re-assessment - assessee had not disclosed fully and truly the material facts necessary for the completion of the assessment - whether there was no fresh material that came to the notice of the Assessing Officer? - HELD THAT:- In the re-assessment order, it was merely stated that "it was noticed that the assessee was allowed a deduction of ₹ 94,86,333/- as bad debts, wrongly. The assessment was therefore re-opened under Section 147. This would stand testimony to the fact that the Assessing Officer has no tangible material evidence to initiate the re-assessment proceedings. Had there been any material evidence, which prompted the assessing officer to initiate re-assessment proceedings, he ought to have atleast indicated it in the order of reassessment proceedings. But the re-assessment proceedings was concluded only on the basis of the explanation offered by the assessee with respect to the suit filed against them before this Court and the Memorandum of Understanding entered into with M/s. Shree Aravindh Steel Private Limited. Therefore, it is evident that the re-assessment proceedings have been initiated without any tangible material evidence, unearthed subsequently, which the assessee did not produce at the time of original assessment u/s 143 (3) . Thus based on a change of opinion on the part of the Assessing Officer, the re-assessment proceedings were initiated. The Tribunal also held that there was no fresh material in the possession of the Assessing Officer warranting initiation of re-assessment proceedings under Section 147 - Tribunal is right in allowing the appeal filed by the assessee - Decided in favour of assessee.
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