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2022 (4) TMI 717 - AT - Income TaxValidity of Reopening of assessment u/s 147 - eligibility of reasons to believe - tangible material in the hands of the AO to initiate reopening - HELD THAT:- For invoking second limb of first proviso to section 147(1) of the Act, the AO is duty bound to record an allegation against the assessee in the reasons recorded for initiation of reassessment proceedings that any income chargeable to tax has escaped assessment for such assessment years by the reasons of failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for that assessment year. From the reasons recorded by the AO it is very much clear that no such allegation has been noted by the AO against the assessee in the reasons recorded and we are unable to see any indication of the AO to invoke second limb of first proviso of section 147 of the Act to initiate action against the assessee for reassessment for A.Y.2007-2008 beyond the period of four years, therefore, we are compelled to hold that the initiation of reassessment proceedings u/s.147 of the Act, issuance of notice u/s.147 of the Act, impugned reassessment order as well as first appellate order are hit by second limb of first proviso to section 147 of the Act, therefore, on this count entire action of the AO including impugned reassessment order and first appellate order deserves to be quashed. So far as second part of the arguments of the assessee, we are of the considered view that from the reasons recorded by the AO we clearly note that the AO has only perused the relevant records as well as Notes forming part of Accounts by initiating action against the assessee for reassessment proceedings for A.Y.2007-2008 and there was no new tangible material in the hands of the AO, which was not before him during original scrutiny assessment proceedings, therefore, it is a clear case of change of opinion, which is again hit by the recent decision in the case of Marico Ltd. [2020 (6) TMI 436 - SC ORDER]. The initiation of reassessment proceedings u/s.147 of the Act, notice u/s.148 of the Act, impugned reassessment and first appellate order also deserves to be quashed on this count and we hold so. - Decided in favour of assessee.
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