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2022 (9) TMI 769 - Income Tax
Reopening of assessment u/s 147 - meaning of word “reason” in the phrase “reason to believe” - HELD THAT:- AO observed in the impugned assessment “It is quite possible that the assessee could have succeeded in its design but for the search in the case of Jain Brothers where complete evidence of colorable mechanism used by the assessee has been seized.” - So the present case is not a case where the impugned notice and reasons suffers from non application of mind or change of opinion, rather, rightly argued by DR, it is the previous assessment order, which suffered from non application of mind and escapement occasioned by reason, of overt omission and failure on the part of the assessee to disclose fully and truly all material facts as were necessary for the assessment.
In the present facts and circumstances, without going on the merits of the impugned assessment, it was not possible for the first appellate authority to give a finding as to if in the previous assessment proceedings the AO was actually having complete and reasonable opportunity to examine the response of assessee and after having honest response of the Assessee, the then assessing officer concluded the assessment proceedings drawing all reasonable inferences.
There is no substance in the propositions and submissions casted out by AR and judicial precedents he has relied are distinguishable on facts. Thus, the ground raised by revenue in the present appeal questioning the order the ld First Appellate Authority for deleting the addition merely on the basis of technical ground without discussing the merits of the case deserves to be sustained. Appeal is allowed for statistical purposes.