TMI Blog2010 (8) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee had omitted or failed either to make a return under section 139 of the Act, 1961 for he year or had failed to respond to a notice under section 142(1) or under section 148 of the Act, 1961 or had failed to disclose fully and truly all the facts necessary for his assessment - in the present case as none of the conditions precedent for invoking the first proviso to section 147 had arisen, the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act, 1961 was duly served. The respondent-assessee s income was assessed and an addition of Rs. 82,46,080 was made. On 24th January, 2006, the assessee s case was reopened under section 147 and notice was issued under section 148 of the Act, 1961. Consequent to the reassessment an addition of Rs. 39,99,324 was made. Though the Commissioner of Income-tax (Appeals) [in short CIT(A)] dismissed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement with the view of the ITAT that the reassessment was barred by limitation as the period of four years had already expired from the end of the relevant assessment year and as none of the conditions precedent in the first proviso to section 147 were fulfilled in the present case. In fact, the first proviso to section 147 which provides extended limitation for reassessment i.e., beyond that peri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , no action can be taken under section 147 of the Act, 1961 after expiry of four years from the end of the relevant assessment year unless the assessee had omitted or failed either to make a return under section 139 of the Act, 1961 for he year or had failed to respond to a notice under section 142(1) or under section 148 of the Act, 1961 or had failed to disclose fully and truly all the facts nec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osition of law as discussed hereinabove with respect to first proviso to section 147, we are inclined to reverse the findings of lower authorities on this legal issue. As the legal issue has already been decided in favour of the assessee, we are not going to decide the merit of addition disputed by the assessee." 7. In our opinion, in the present case as none of the conditions precedent for invo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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