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2022 (3) TMI 785 - HC - Income TaxValidity of Reopening of assessment u/s 147 - amount which petitioner received against new unsecured non-convertible redeemable debentures was actually the sale consideration received in respect of sale of flats and that has escaped assessment within the meaning of Section 147 - HELD THAT:- In our view, this issue has been the subject matter for discussion and consideration by the Assessing Officer before the assessment order dated 26th April, 2010 was passed. Moreover, since the proposed reopening is after expiry of four years from the end of the relevant assessment years, Revenue has to show that there was failure on the part of petitioner to disclose truly and fully all material facts required for assessment. We cannot make out, from the reasons for re-opening, that there has been any such failure. The entire basis for re-opening is relying upon the balance sheet filed by petitioner. The statement of Revenue that there has been failure on the part of petitioner to disclose fully and truly all material facts is only to get over restrictions imposed in Section 147 of the Act. On this ground alone the notice has to be quashed and set aside. Moreover, since the issue of debentures has been a subject of consideration of assessment proceedings, re-opening on the same basis relying on the same primary facts disclosed based on change of opinion is not permissible. Revenue submission that issue of debentures has not been disclosed in the assessment order would not help Revenue because it is settled law that it is not necessary that the assessment order should contain reference and/or discussion to disclose its satisfaction in respect of the query raised. Once a query is raised during the assessment proceedings and the assessee has replied to it, it follows that a query raised was a subject of consideration of the Assessing Officer while completing the assessment. We have to note that the order rejecting petitioner’s objections does not even deal with petitioner’s objections on merits.
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