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2022 (10) TMI 721 - AT - Income TaxValidity of Reopening of assessment u/s 147 - income chargeable to tax had escaped assessment for three-fold reasons, viz. (i) the offering of the income surrendered in the course of the survey proceedings as business income and claiming of interest and remuneration as a deduction against the same was not as per the mandate of law; (ii) there depreciation on truck was wrongly claimed at a higher rate i.e @40%; and (iii) the failure on the part of the assessee to deduct tax at source on interest paid on loan to a non-banking finance company rendered its claim for deduction of the same liable for disallowance u/s 40(a)(ia) of the Act - HELD THAT:- We are inclined to accept the claim of the Ld. AR that as the concluded assessment in the case of the assessee had been reopened by the A.O by issuing notice u/s.148 i.e. beyond four years from the end of the relevant assessment year i.e A.Y 2008-09, therefore, the assessment so framed in absence of valid assumption of jurisdiction on his part could otherwise also not be sustained and is liable to be struck down on the said count itself. Our aforesaid view that as per the mandate of the “1st proviso” to Sec. 147 reopening of a concluded assessment beyond four years from the end of the relevant assessment year, inter alia, in the absence of any failure on the part of the assessee to disclose fully and truly all material facts which were necessary for its assessment is not permissible is supported by the judgment of the Hon’ble High Court of Delhi in the case of Haryana Acrylic Manufacturing Company [2008 (11) TMI 2 - DELHI HIGH COURT] In the case of New Delhi Television Ltd. [2020 (4) TMI 133 - SUPREME COURT] had, inter alia, held, that though the assessee is obligated to disclose the “primary facts”, but it is neither required to disclose the “secondary facts” nor required to give any assistance to the A.O by disclosure of the other facts and it is for the A.O to decide what inferences are to be drawn from the facts before him. As in the present case before us the assessee had disclosed fully and truly all the material facts, therefore, by no means he could have been saddled with any failure to disclose fully and truly all material facts that were necessary for framing of its assessment, which would have otherwise justified bringing its case within the realm of the extended time period contemplated in the “1st proviso” of section 147 of the Act for validly reopening the same. We, thus, in terms of our aforesaid observation being of the view that the A.O had wrongly assumed the jurisdiction and reopened the concluded assessment of the assessee, which, was earlier framed by his predecessor vide order passed u/s.143(3) therefore, quash the consequential assessment order passed by him u/s.144 r.w.s. 147. Assessee appeal allowed.
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