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2022 (4) TMI 344 - HC - Income TaxReopening of assessment u/s 147 - Whether provisions u/s 56(2)(vii)(c)(ii) will not be attracted, in the fact of the case? - HELD THAT:- Provisions under Section 56 would reflect that Section 56 mentions about the income from other sources. Section 56(vii) talks about the income received by an individual or a Hindu undivided family in any previous year. Petitioner is a company and in view of specific provision under Section 56(2)(vii) relied by the AO for issuance of notice will not be applicable to the petitioner who is a company. For issuance of notice u/s 148 there should be tangible material and mandatory compliance of Section 147 - Proceedings of reassessment has been initiated against company after lapse of 4 years of submission of return, which is not in dispute. Under first proviso to Section 147 of the I.T. Act, for starting the reassessment proceedings after lapse of 4 years, AO has to record his conclusion that there was failure on the part of assessee in not disclosing fully and truly all material facts necessary for assessment of that particular assessment year, which is not appearing from the reading of the Annexure i.e. reasons for issuance of notice. Reason assigned for issuance of notice and provisions mentioned therein, in the opinion of this Court, there was no reason/ground available with Assessing Officer to issue notice under Section 148 of the I.T. Act. Issuance of notice under Section 148 to petitioner is not in accordance with the first proviso to Section 147 of the I.T. Act, therefore, it is not sustainable, which is liable to be quashed and it is hereby quashed. - Decided in favour of assessee.
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