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2022 (7) TMI 168 - AT - Income TaxReopening of assessment u/s 147 - eligible Reasons for belief that income has escaped assessment - As alleged assessee had not furnished relevant documents and evidences during the assessment proceedings, therefore disallowed undisclosed work in progress and added to the total income of the assessee - Also addition on account of short accounted of contract income and interest income - HELD THAT:- The settled position of law is that if an assessment for any year has been completed u/s 143(3) or u/s 147, then no action shall be taken u/s 147 after the expiry of four years from the end of relevant assessment year unless income chargeable tax has escaped assessment by reason of the failure on the part of the assessee. We have examined the original assessment order framed by assessing officer under section 143(3) of the Act and note that there is no allegation that the assessee has failed to disclose fully and truly, all material facts necessary for assessment. We note that there is change in opinion as the assessee has disclosed all the material facts in its return of income, and submitted WIP details, Interest details, TDS details, contract income, interest income, Balance Sheet along with annexures, and other evidences as required by the assessing officer and the Assessing Officer had considered the same while completing the original assessment u/s 143(3) of the Act dated 07.12.2011. We note that in the assessee`s case in the reasons supplied to the assessee, there is no whisper, what to speak of any allegation, that the assessee had failed to disclose fully and truly all material facts necessary for assessment and that because of this failure there has been an escapement of income chargeable to tax. See KANTIBHAI DHARAMSHIBHAI NAROLA VERSUS THE ASSISTANT COMMISSIONER OF INCOME TAX, WARD 3 (2) (4) [2021 (2) TMI 102 - GUJARAT HIGH COURT] as held held that there cannot be any action under Section 147 of the Act after the expiry of a period of four years from the end of the relevant assessment year until and unless the income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make disclosure of all the material facts truly and fully necessary for assessment. Merely having a reason to believe that income had escaped assessment, is not sufficient to reopen assessments beyond the four year period, as explained above. The escapement of income from assessment must also be occasioned by the failure on the part of the assessee to disclose material facts, fully and truly. Therefore, based on these facts and circumstances, we do not find any infirmity in the order of ld CIT(A), hence we confirm and approve the findings of ld CIT(A) and dismiss the grounds raised by the Revenue.
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