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2020 (5) TMI 517 - HC - Income TaxReopening of assessment u/s 147 - Whether the notice that has been issued to the petitioner was on account of change of opinion or on account of failure on the part of the petitioner to fully and truly disclose all material required for the assessment? - whether there was full and true disclosure by the petitioner as is contemplated under proviso to Section 147? - HELD THAT:- In this case, mere filing to the annexure by the petitioner in response to notice during scrutiny assessment by itself may or may not have been sufficient to come to the conclusion that there was full and true disclosure by the petitioner if the information furnished was neither complete nor true. Question is whether the information furnished were complete in all respect is to be decided only in a adjudicator mechanism. It is therefore best left open for the petitioner to demonstrate before the respondent that the details furnished by the petitioner meets the requirements of full and true disclosure for the Assessing Officer to drop the proceedings in terms of 1st proviso to Section 147 of the Income Tax Act, 1961. In case there is a change of opinion, the respondent cannot proceed in the light of the decision of the Hon’ble Supreme Court in CIT Vs. Kelvinator of India Ltd. [2010 (1) TMI 11 - SUPREME COURT] In case indeed there is a mere change in opinion, the respondent will be obliged to drop the proceeding. To ascertain whether is a mere change of opinion or not first it has to be established that there was true and full disclosure by the petitioner. As mentioned above, this can be demonstrated by the petitioner only before the respondent and not in a proceeding under Art.226 of the Constitution of India as scope of judicial review is very limited and it is not possible to conduct a roving enquiry on facts and accounts. Under these circumstances, find no merits in quashing the impugned notice and the communication overruling the objection of the petitioner. Relegate the petitioner to participate in the proceedings before the respondent by filing appropriate representations/objections within a period of thirty days from the date of receipt of a copy of this order. If the circumstance do not justify invocation of proviso to Section 147, the respondent shall drop the proceedings.
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