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2023 (12) TMI 60 - AT - Income TaxValidity of reopening of assessment u/s 147 - Reasons to believe - notice beyond period of four years - Exemption u/s 10B to be denied as assessee has not carried out any manufacturing activity - HELD THAT:- It is very clear that there is absolutely no whisper about the failure on the part of the assessee to make full and true disclosure of all material facts relevant for the purpose of assessment in the original assessment proceedings before the ld. AO. Admittedly, the notice u/s 148 of the Act was issued to the assessee on 03.03.2015 which is beyond the period of 4 years from the end of the relevant assessment year. Hence, the proviso to section 147 of the Act would come into operation. As per the said proviso, the ld AO is bound to duly mention the failure on the part of the assessee to make full and true disclosure of all material facts relevant for the purpose of assessment. We find that this issue is no longer res integra in view of the decision of Hindustan Lever Ltd Vs. R. B. Wadkar2004 (2) TMI 41 - BOMBAY HIGH COURT] Reasons are the manifestation of mind of the Assessing Officer. The reasons recorded should be self-explanatory and should not keep the assessee guessing for the reasons. Reasons provide link between conclusion and evidence. The reasons recorded must be based on evidence. The Assessing Officer, in the event of challenge to the reasons, must be able to justify the same based on material available on record. He must disclose in the reasons as to which fact or material was not disclosed by the assessee fully and truly necessary for assessment of that assessment year, so as to establish vital link between the reasons and evidence. The reasons recorded by the Assessing Officer cannot be supplemented by filing affidavit or making oral submission. Thus the reopening deserves to be quashed and is hereby quashed. Decided in favour of assessee.
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