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2018 (12) TMI 52 - KERALA HIGH COURTReopening of assessment - whether mere disclosure in a re-assessment proceedings would permit the assessee to be absolved of the liability of re-assessment, after four years but within six years, if there was no full and true disclosure at the time of the original assessment, ie., under Section 143(1)(a)? - whether non-disclosure at the time of first re-assessment was the ground on which the First Appellate Authority or the Tribunal set aside the second re-assessment proceedings? - Held that:- We find that there can be no allegation raised of nondisclosure of full and true material facts, especially since it to be noticed that the estimation of profits on the contract bills were made by the A.O. himself for the previous assessment year. The expenses were also allowed on the estimation of profits. The assessee had claimed the benefit, since the receipt was accounted by the assessee in the previous year to the subject assessment year. What is pertinent is that the earlier years, assessment was completed making the estimation on certain contract receipts on 24.11.2000 under Section 143(3) read with Section 147. The return of income for 1998-99 was filed on 31.03.2000 prior to the completion of assessment of the previous assessment year. AO who carried out such assessment under Section 143(1) and 143(3) ought to have been more careful in having scrutinized the assessment order of the earlier year wherein the additions were made estimating a profit with respect to certain contract receipts. In any event, there could not have been any non-disclosure of full and true material facts alleged by the assessee since the return was filed long prior to the estimation made. In such circumstances, we are of the opinion that the proceedings itself was misconceived and the assessee had to file a first appeal in which the proceedings under Section 147 was set aside. - Decided in favour of assessee.
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