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2023 (1) TMI 575 - HC - Income TaxReopening of assessment u/s 147 - Reason to believe - change of opinion - reassessment proceedings after a period of 4 years - HELD THAT:- Reasoning assigned by the ITO for reopening the proceedings on the ground that the material facts were not fully and truly disclosed by the petitioner and thus, his income escaped assessment, is absolutely unfounded. A clear perusal of the proviso to Section 147 makes it clear that reassessment proceedings after expiry of four years from the end of the relevant assessment year can only be initiated in case, there is tangible material with the AO to show that the assessee had failed to fully and truly disclose all material facts necessary for his assessment for that assessment year. This Court, after analysis of material facts available on record, is of a categoric opinion that the assessee disclosed all material facts truly and fully while furnishing the return for the Assessment Year 2013-14 and hence, there was no justification for invoking the proviso to Section 147 so as to initiate reassessment proceedings after a period of 4 years. Reassessment notice is definitely time barred. In addition thereto, the reassessment notice has been issued only on account of ‘change of opinion’, plain and simple, without any tangible fresh material being available to the ITO for reopening the assessment proceedings. Resultantly, the impugned notice is declared to time barred and cannot be saved by proviso to Section 147 of the Income Tax Act. In addition thereto, the reassessment is being resorted to only on account of ‘change of opinion’ of the Assessment Officer without there being any fresh tangible evidence for reopening the assessment proceedings. Hence also, the impugned notice u/s 148 runs foul of the Kelvinator of India Limited [2010 (1) TMI 11 - SUPREME COURT] and thus, the same cannot be sustained and is liable to be struck down. - Decided in favour of assessee.
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