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2023 (6) TMI 869 - AT - Income TaxValidity of re-assessment - original assessment order as passed u/s 143(3) r.w.s. 144C - reason to believe - HELD THAT:- The reasons that re-assessment notice was issued on the basis of the same set of facts/materials which was already available and considered at the time of original assessment. Additions have been made on the basis of documents filed by the assessee i.e. audited financial statement and computation of income. A.O. in the reasons recorded in respect of each of the items/issues relied on information filed by the Assessee. In so far ‘donation’ is concerned, A.O. referred to Schedule-18 ‘Other operating expenses’ of the profit and loss account, in so far as ‘provision for compensated absences’, A.O. referred to the assessment records and in so far as ‘provision for litigation and claims’, A.O. has also referred to the assessment records. Thus, there it cannot be said that there was a ‘failure on the part of the assessee to disclose fully and truly of material facts’ and it is found that no new tangible material came to be existence post completion of original assessment. Reopening beyond period of four years - In terms of Proviso to Section 147 of the Act, once the assessment had been completed u/s 143(3) reopening is not permissible beyond four years from the end of relevant assessment year, unless income has escaped assessment by reason of failure of the assessee to disclose fully and truly all material/primary facts necessary for the assessment. There is no material facts brought on record by the A.O. to show that the assessee had failed to disclose fully and truly all material/primary facts necessary for assessment, on the contrary, additions have been made based on the revisit of the documents filed by the assessee himself i.e. audited financial statement and computation of income. Thus, the reassessment proceedings are barred by limitation. Decided in favour of assessee.
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