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2023 (11) TMI 1004 - KERALA HIGH COURTValidity of Reopening of assessment - income in respect of the transfer of the petitioner’s shares while acquiring ‘National Woods Products’ had escaped assessment u/s 56(2)(viib) - whether the re-assessment proceedings initiated are vitiated in any manner inasmuch as the same is said to be based on a change of opinion? - HELD THAT:- The petitioner had not filed the return of his income under Section 56(2)(viib) of the IT Act. Considering the provisions of Explanation 1 to Section 147 of the IT Act, the mere submission of books of accounts and other material would not discharge an assessee from the obligation of disclosing fully and truly all material facts necessary for the assessment of the income. The reasons recorded by the AO would disclose that the AO has formed an opinion and has the belief that the income in respect of the transfer of the petitioner’s shares while acquiring ‘National Woods Products’ had escaped assessment u/s 56(2)(viib). The reasons recorded by the Principal Commissioner of Income Tax to accord sanction for the issue of notice u/s 148 cannot be said that the sanction was granted mechanically and without application of the mind. The mere submission of books of accounts and the certificate issued by the Statutory Auditor would not amount to the fact that the petitioner has disclosed fully and truly all material facts in his returns for completion of the assessment proceedings in respect of his income. Therefore, find that there is no error of jurisdiction committed by the authorities by re-opening the assessment. The petitioner has participated in the re-assessment proceedings, and now the final order has been passed. The petitioner has the remedy of approaching the Appellate Authority under Section 246A of the IT Act against the said assessment order. WP dismissed.
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