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2023 (12) TMI 217 - MADRAS HIGH COURTValidity of Reopening of assessment u/s 147 - condition precedent for invoking the extended period of six years for re-assessment u/s 147 - assumption of jurisdiction in the absence of a finding that the income chargeable to tax has escaped assessment by reason of the failure to fully and truly disclose material particulars - gain on sale of land - LTCG or business income - HELD THAT:- Failure to render a finding that income chargeable to tax has escaped assessment by reason of failure on the part of the assessee to fully and truly disclose the material facts necessary for assessment is a condition precedent to invoke the extended period beyond four years under section 147 of the Act. Absence of such finding would vitiate the reassessment proceeding. As relying on this court case M/S. Seshasayee Paper And Board Limited Rep. By Its Director (Finance) & Secretary Sri V. Pichai [2023 (3) TMI 1111 - MADRAS HIGH COURT] the impugned notice and consequential proceedings invoking the extended period of limitation beyond 4 years for making a reassessment under Section 147 read with Section 148 of the Act in the absence of any finding as to the existence of the condition precedent viz., that income chargeable to tax has escaped assessment by reason of failure on the part of the assessee to fully and truly disclose the material particulars vitiates the entire proceedings and thus liable to be set aside. Assessee appeal allowed.
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