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2022 (6) TMI 447 - AT - Income TaxReopening of assessment u/s 147 - Deduction u/s 54EC and 54F - HELD THAT:- As notice under section 148 of the Act was issued on 30.03.2016 for the assessment year 2009-10. Since action u/s 147 of the Act was initiated after four years from the end of the relevant assessment year 2009-10, which expired on 31.03.2014, both the conditions provided in section 147 should have been satisfied for the reopening proceedings to be valid. However, even assuming that the AO had reason to believe that income had escaped assessment, the second condition was not satisfied in the instant case as the assessee had disclosed fully and truly all necessary material facts in the course of original assessment proceedings and the AO has identically verified the same in para 7 and 8 of the assessment order under section 143(3) dated 08.12.2011. AO has not established that the assessee has not made a full and true disclosure of all material facts. Since the reasons recorded in the present case did not meet the conditions stipulated u/s 147 the reassessment proceedings could not be sustained in view of the judgement in the case of CIT v. Schwing Stetter India P. Ltd. [2015 (6) TMI 497 - MADRAS HIGH COURT]. Under the above facts and circumstances and respectfully following the judgement of Hon’ble Supreme Court in the case of CIT v. Kelvinator of India Ltd. [2010 (1) TMI 11 - SUPREME COURT] and in the case of CIT v. Schwing Stetter India P. Ltd. [2015 (6) TMI 497 - MADRAS HIGH COURT] we set aside the order of the ld. CIT(A) on this issue and quash the reassessment order passed under section 143(3) r.w.s. 147 of the Act. The ld. DR could not file any counter statement against the cross objection filed by the assessee. Appeal of assessee allowed.
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