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2023 (12) TMI 216 - HC - Income TaxReopening of assessment u/s 147 - Reason to believe - notice beyond four years - change of opinion - whether there is change of opinion or otherwise is a question of fact which ought to be examined by the statutory authority? - assessee sold two land properties and received the sale consideration by way of cash and has offered the same under short term capital gains - HELD THAT:- Whether absence of a finding that the income chargeable to tax has escaped assessment by reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment would vitiate / prove fatal to a reassessment invoking the extended period of limitation under Section 147 of the Act is no longer res-integra. It has been decided by the Division Bench of this Court in the case of ACIT vs. Seshasayee paper and Board Ltd. [2023 (3) TMI 1111 - MADRAS HIGH COURT] and Durr India (P.) Ltd. [2022 (8) TMI 1340 - MADRAS HIGH COURT] that finding as to failure on the part of the assessee to disclose fully truly material particulars is a condition precedent for invoking extended period and in the absence of such finding, initiation of invoking extended period would stand vitiated. Thus finding that income chargeable to tax has escaped assessment by reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment is a sine qua non and a condition precedent to invoke power of reassessment under Section 147 read with Section 148 of the Act beyond 4 years from the relevant assessment year and failure to render such a finding would prove fatal to the validity of such proceeding. Assessee appeal allowed.
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