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2022 (9) TMI 765 - Income Tax
Validity of re-opening of assessment u/s 147 - reopening beyond period of four years - absence of failure on the part of the assessee to disclose all material facts necessary for completion of the assessment - HELD THAT:- We hold that the reopening of assessment beyond a period of four years from the end of the relevant assessment year is not in accordance with law. Mere mentioning of the words failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment by the AO, in our opinion is not sufficient in absence of showing which part of the material was not disclosed by the assessee.
This view of ours finds support from the decision in the case of Hindustan Lever Ltd. vs R.B.Wadker [2004 (2) TMI 41 - BOMBAY HIGH COURT] held that the AO must disclose in the reasons as to which fact or material was not disclosed by the assessee fully and truly necessary for assessment of that assessment year to establish the vital link between the reasons and evidence.
We, therefore, hold that the initiation of reassessment proceedings by the AO in the instant case is not in accordance with law and therefore, the same has to be quashed. Accordingly, we quash the reassessment proceedings and the grounds raised by the assessee on this issue are allowed.