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TMI Blog2013 (3) TMI 463X X X X Extracts X X X X X X X X Extracts X X X X ..... The ld.CIT(A) erred in law stating that the claims of Designs and drawing expenses were examined during the original assessment proceedings on 15/06/2006 whereas the facts evident from the order sheet is that no discussion took place on 15/06/2006 and the proceedings were simply adjourned. The order of the ld.CIT(A) suffers from the vice of perversity. 3. The ld.CIT(A) erred in relying on the project agreements filed on 15/06/2006, which do not even contain the particulars of relevant expenses of drawings and designs. The consideration of irrelevant material, therefore, vitiates the order of the ld.CIT(A). 4. The ld.CIT(A) erred in holding that the order passed by AO, disposing off assessee's objection, is a non- speaking order. On the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year." 5. Thus, when the original assessment is completed under Section 143(3), reopening cannot be made beyond four years from the end of the relevant assessment year unless there is failure on the part of the assessee to furnish the return of income or to disclose the material facts necessary for assessment. In this case, original assessment was completed under Section 143(3) and reopening was made beyond four years from the end of the relevant assessment year. There is no failure on the part of the assessee to furnish the return of income. Therefore, only point which needs to be examined is whether there was an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sdictional High Court in the case of Atma Ram Properties Pvt.Ltd. Vs. DCIT - 343 ITR 141 (Delhi), wherein their Lordships held as under, would be squarely applicable:- "In order to initiate proceedings for reassessment after four years, there should have been a failure on the part of the assessee to disclose material facts necessary for assessment. If the Assessing Officer had failed to apply legal provisions/section of the Income-tax Act, 1961, the fault cannot be attributed to the assessee. The requirement is that the assessee should have failed or omitted to make full and true disclosure of material facts. The assessee is not required to disclose, state or explain the law." 7. In view of the above, respectfully following the above deci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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