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2024 (3) TMI 473 - AT - Income TaxReopening of assessment u/s 147 - reasons to believe - As argued “Reasons for Reopening” do not specify either the “Specific issues” for which case is sought to be reopened and nor the “amount of alleged escapement of income chargeable to tax” - HELD THAT:- We observe that there is no specific allegation that there is any non-disclosure on part of the assessee during the course of assessment proceedings. In the recent case of PCIT v. DSC Ltd.;2023 (7) TMI 865 - DELHI HIGH COURT] the High Court held that where assessment was ought to be reopened in case of assessee on ground that a search conducted at DSC Group of Companies revealed bogus purchases made by assessee through unexplained sources, since reasons recorded by AO did not make specific allegations of failure to disclose all material facts by assessee, jurisdictional ingredients for reopening assessment provided in first proviso to Section 147 were absent, both in form and substance and, thus, proceedings were bad in law. In the case of Dhirendra Hansraj Singh [2018 (5) TMI 1386 - GUJARAT HIGH COURT] High Court held that where after expiry of four years from end of relevant year, Assessing Officer sought to reopen assessment on ground that deduction u/s 80-IB(11A) was wrongly claimed as assessee was engaged in manufacturing and processing of fruit juices and did not derive profits from processing, preservation and packaging of fruits, since there was no failure on part of assessee to disclose fully and truly any material facts which were necessary for assessment, in view of proviso to Section 147, impugned reassessment proceedings deserved to be set aside. We also agree with the contention of assessee that the reasons for reopening also do not specify the amount of income having escaped assessment, so as to extend the period of limitation beyond four years from the end of the relevant assessment year. Where nothing has been brought on record to show that there was failure on part of the assessee to fully and truly disclose all material facts during the course of original assessment proceedings, we are of the considered view that initiation of reassessment proceedings are liable to be stuck down. Appeal of the assessee is allowed.
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