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2023 (4) TMI 1177 - HC - Income TaxValidity of reopening of assessment u/s 147 - assessee was subjected to scrutiny and accordingly, an order u/s 143(3) of the Act was framed - whether the AO could have commenced the reassessment proceedings based on the information already available on record? - HELD THAT:- On a careful perusal of the reasons, it appears that there is no reference to an audit objection, or to any other objection for that matter. Therefore, insofar as the AO is concerned, the trigger was the information which was already available on record. The respondent/assessee had debited, as it appears, the loss on sale of fixed assets in its Profit and Loss account, and this was an aspect which the AO seems to have noticed after the scrutiny assessment was framed. It is well-established that reassessment proceedings can be based on new material, and not material information which is already on record. The respondent/assessee in this case had disclosed primary facts. AO, decidedly, committed an error in appreciating the information that was already available on record. To our minds, the power available to the AO under Section 147 of the Act does not go so far as to correct errors in appreciating the primary facts, which are disclosed by the respondent/assessee. Insofar as Appellant submission is concerned, that the respondent/assessee had agreed to the addition with regard to the deduction qua loss on sale of fixed of assets wrongly claimed by it, we can only say that once we hold that the error was impregnated with jurisdictional flaw, no amount of concession can help the cause of the appellant/revenue. Decided in favour of assessee.
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