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2022 (12) TMI 305 - HC - Income TaxReopening of assessment u/s 147 - Reasons to believe - alleged failure to disclose fully and truly all material facts in so many words - accrual of income - Reopening beyond period of four years - transaction of E-auction by the Monitoring Committee, the sale of ore, and the sale of 209,961 tons of ore by the Monitoring Committee - whether the amount had indeed accrued to the Petitioner during the AY 2012-13? - HELD THAT:- AO could have taken the view that even the amount of ₹64.92 crores warrants tax payment because the same was accrued to the Petitioner during the AY 2012-13. Further, perhaps the Revenue could have explored the possibility of reopening the assessment within four years from the end of the relevant AY. However, for any attempt to reopen the assessment after four years from the end of the relevant AY, the Revenue had to establish failure on the part of the Assessee to disclose fully and truly all material facts necessary for its assessment for that relevant AY. In the absence of this jurisdictional parameter, the impugned notice seeking to reopen the assessment four years after the end of the relevant AY would not sustain. The question is not whether the Petitioner was right in not offering the amount of ₹64.92 crores to tax during AY 2012-13, but the question is whether the Petitioner had disclosed, fully and truly all material facts concerning this amount of ₹64.92 crores, which, incidentally, was never received by the Petitioner during AY 2012-13. Moreover, the Petitioner disclosed this material fact and explained why this amount was not brought to tax during AY 2012-13. Apparently, this explanation found favour with the Assessing Officer; therefore, this amount was not added to the returned income for the relevant AY. As noted earlier, the record also bears out that the Petitioner duly accounted for the above amount for the following AY 2013-14, and appropriate tax was paid thereon. AO for AY 2013-2014 did not object to this amount of Rs.64.92 crores being offered to tax in AY 2013-2014 or not being offered to tax in AY 2012-2013. For all the above reasons, we are satisfied that the impugned notice exceeds the prescribed jurisdictional parameters. The impugned notice is accordingly quashed and set aside. The rule is made absolute in terms of prayer clauses (a),(b) and (c), which read as follows: (a) Declare that the Impugned Notice issued under Section 148 of the Act dated 29 March 2019 (Exhibit A) and the Impugned Order on objections dated 07 December 2019 (Exhibit D) and the impugned reassessment proceedings for AY 2012-13 are wholly without jurisdiction, illegal, arbitrary and liable to be quashed. (b) Issue a Writ of Certiorari or a Writ in the nature of Certiorari or any other appropriate Writ, order or direction under Article 226 of the Constitution of India, quashing the Impugned Notice issued under Section 148 of the Act dated 29 March 2019 (Exhibit A) and the Impugned Order on objections dated 07 December 2019 (Exhibit D) and the impugned reassessment proceedings for AY 2012-13 as being wholly without jurisdiction, illegal and arbitrary.
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