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2023 (2) TMI 534 - HC - Income TaxReopening of assessment u/s 147 - reason to belive - reopening beyond period of four years - reliance on internal audit objection - HELD THAT:- As gone through the reasons, it is clear that on account of the internal audit objection that a remedial action of reopening the assessment by an action u/s 148 of the Act was taken with a view to settle the audit objection as more particularly stated in reply. The basic facts that were canvassed and brought on record by the petitioner were neither disputed / controverted in the reasons recorded. The position in law as contended by the Petitioner is not in dispute. By virtue of a proviso to section 147, no action can be taken for reopening after four years unless the AO has reason to believe that income has escaped assessment by reason of the failure on the part of the assess to disclose fully and truly all material facts necessary for assessment. The affidavit clearly evinces that the department has purported to reopen the assessment only on the basis of change of opinion. The reasons do not spell out failure on the part of the assessee to disclose fully and truly all material facts. The Petitioner has disclosed all primary facts. We are required to consider whether the pre-condition for issue of a valid notice u/s 148 has been fulfilled or not. We are satisfied that the reopening is sought on the basis of change of opinion as apparent from the reply and there is nothing in the reasons to indicate that reopening is sought on the ground of failure on the part of the Petitioner to disclose truly and fully all material facts. This case is clearly covered by the judgement of this Court in the case of Ananta Landmark Pvt. Ltd [2021 (10) TMI 71 - BOMBAY HIGH COURT] and we are in agreement with the same. - Decided in favour of assessee.
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