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2022 (9) TMI 519 - Income Tax
Validity of Reopening of assessment u/s 147 - Reopening on the basis of information received from DDIT (Investigation), Kolkata - AO alleged that assessee is a beneficiary in transaction of layering of funds through the bank account and in this regard, the assessee has failed to disclose truly and fully all material facts - HELD THAT:- The details pertaining to the amount due from these entities were provided by the assessee during the course of scrutiny assessment proceedings and said details were accepted by the AO under section 143(3) - in view of the details available on record it cannot be said that assessee has failed to provide fully and truly all material facts necessary for his assessment in the present case.
As is evident from the record the amount due from these entities pertains to the previous financial year and assessee being an Indian company has already paid the taxes thereon, since it follows the mercantile system of accounting. Therefore, we are of the considered view that conditions laid down in 1st proviso to section 147 of the Act are not satisfied in the present case. Thus, the reassessment proceedings under section 147 of the Act, in the present case, are set aside being bad in law. Accordingly, the impugned order passed by the learned CIT(A), inter-alia, upholding the order passed under section 143(3) r.w.s. 147 of the Act is set aside. As a result, ground No. 1 raised in assessee's appeal is allowed.