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2024 (5) TMI 434 - ITAT BANGALOREValidity of reopening of assessment - reasons recorded that the escapement is due to a failure to disclose true and accurate particulars of income - notice after expiry of 4 years - eligibility of reasons to believe - discrepancies were noticed during audit with respect to the return of Income filed by the assessee in respect of non-deduction of TDS on interest payment, non-inclusion of accrued interest on NSC and not following percentage completion method of arriving income/loss as per Accounting Standard AS-7. HELD THAT:- We do not find that there is any finding recorded to the effect that assessee failed to disclose fully and truly all material facts necessary for relevant assessment year. There is no allegation by ld. AO while recording the reason that there was any failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment, which result in reopening of assessment. Disallowance u/s 40(a)(i) as assessee not deducted TDS - A.R. submitted before us that all these details were made available to the AO at the time of completion of original assessment u/s 143(3) of the Act on 23.12.2009 and after considering all information furnished at the time of original assessment, the ld. AO passed the said original assessment order on 23.12.2009. Now he is relooking the same records with him to issue a notice u/s 148 of the Act. If there is a failure on the part of ld. AO to consider the various documents filed by the assessee at the time of original assessment u/s 143(3) of the Act, he cannot revisit these documents after the expiry of 4 years from the end of relevant assessment years as there was no failure on the part of assessee to disclose all material facts necessary for the purpose of assessment, since there was no allegation by the ld. AO while recording the reasons for reopening of assessment to the effect that the assessee has failed to disclose fully and truly all material facts necessary for its assessment for this assessment year. In such circumstances, we are not in agreement with the ld. D.R. that the assessment is validly reopened vide notice - Accordingly, we quash the reassessment order framed in this case on this primary issue. As such, there should be disallowance u/s 40(a)(i) of the Act. Thus, in our opinion, there was a ground by assessee before ld. CIT(A) with regard to validity of reopening of assessment u/s 148 - NFAC considered all and observed that reopening of the assessment in this case is after 4 years from the end of the relevant assessment year without any allegation that there is a failure on the part of the assessee to disclose all material facts truly and correctly before ld. AO. Hence, ld. NFAC correctly quashed the assessment order. Decided in favour of assessee.
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