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2022 (4) TMI 1183 - AT - Income TaxReopening of assessment u/s 147 - findings of fact made on the basis of fresh materials - investment was made with unrelated and independent people and does not fall for the inclusion of number of residential house property for the deduction u/s. 54 - HELD THAT:- AO who completed the regular assessment u/s. 143(3) during the course of assessment has in fact called for details relating to properties and has verified the details before passing the order and hence ought to have applied his mind while passing the order - AO had called for details pertaining to various sources of income declared by the assessee i.e. details pertaining to professional income, income from house property etc. and has concluded the assessment after thorough verification of these details. Hence it would not be prudent to say that there has not been an application of mind on the part of the AO while completing the original assessment u/s.143(3) even if one wants to take cannot take shelter under clause (c) to explanation 2 to section 147 for the purpose of reopening the assessment. There is no new material has been brought on record where the AO has a ‘reason to believe’ that the income has escaped assessment when all the relevant materials have already been made available at the time of original assessment. The decision relied on by the revenue of Ess There is no new material has been brought on record where the AO has a ‘reason to believe’ that the income has escaped assessment when all the relevant materials have already been made available at the time of original assessment. The decision relied on by the revenue of Ess Ess Kay Engineering Co. P. Ltd [1997 (7) TMI 114 - SC ORDER ] is distinguishable as the Hon’ble Supreme Court in that case held that the AO may reopen the assessment of an earlier year on the basis of his findings of fact made on the basis of fresh materials in the course of assessment of the next assessment year. In the case under consideration no fresh materials are found and the reopening is done basis of the materials which were already with AO during the course of regular assessment u/s.143(3). Co. P. Ltd (supra) is distinguishable as the Hon’ble Supreme Court in that case held that the AO may reopen the assessment of an earlier year on the basis of his findings of fact made on the basis of fresh materials in the course of assessment of the next assessment year. In the case under consideration no fresh materials are found and the reopening is done basis of the materials which were already with AO during the course of regular assessment u/s.143(3). Appeal of assessee allowed.
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