TMI Blog2019 (2) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... support of the impugned notice would make it evident that there has been a complete disclosure of all material facts on the part of the petitioner in the regular assessment proceedings under Section 143(3) of the Act. This is so as the basis of the notice as indicted in the reasons is information collected from the examination of the records. There is no new tangible material received by the AO that has triggered the impugned notice. Moreover, these reasons, further, record that the amounting to ₹ 1.84 crore have been credited to profit and loss account and have been offered to tax by the petitioner as part of its business income, however, the same was not accepted by the Assessing Officer on the ground that the petitioner did no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part of its business income. (b) The Assessing Officer took up the above return of income for scrutiny assessment. After detailed examination, the Assessing Officer disallowed the the claim of loss on account of business, this on the ground that it did not carry out any business. This resulted in disallowing its claim for business expenditure. Thus, passing an order dated 30.3.2014 under Section 143(3) of the Act, resulting in assessing only the petitioner's rental income under the head, 'Income from House Property'. Thus assessing the petitioner to taxable income of ₹ 25.86 crore. (c) Thereafter, the impugned notice was issued on 26.3.2018 seeking to reopen the assessment for the assessment year 2011-12. The re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidering the view that the assets liabilities reflected in the books as on 31.3.2011 (include balance as on 6.6.2015) have been accounted in the financial statement pursuant to Provisional Transfer Scheme which has not attained its finality for the claim of brought forward losses. Therefore, department considered only rental income as taxable under the income from House Property by disallowing all expenditures and brought forward losses due to the said reason. Further, it was also noticed that assessee earned income from fixed deposit amounting to ₹ 1,84,86,795/- (credited to P L A/c), however, the same has not been accounted by department for taxability purposes. From the assessee's balance sheet, it is observed that as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come of ₹ 1,84,86,795/- leading to short levy of tax of ₹ 61,40,851/-. 6. Escapement of income chargeable to tax in relation to any assets (including financial interest in any entity) located outside India: Not Applicable. 7. Findings of the AO on true and full disclosure of the material facts necessary for assessment under Proviso to Section 147: Findings on examination of records and verification thereof revealed that the assessee had not disclosed full and truly all material facts necessary for his assessment or that the facts of the case are covered by the explanation 1 to section 147 of the Act. 8. Applicability of the provisions of Section 147/151 to the facts of the case: In this case, a return of inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning u/S. 147 of the Act. It is true that the assessee has filed a copy of annual report and audited P L A/c. and balance sheet along with return of income where various information / material were disclosed. However, the requisite full and true disclosure of all material facts necessary for assessment has not been made as noted above. It is pertinent to mention here that even though the assessee has produced books of accounts, annual report, audited P L a/c. and balance sheet or other evidence as mentioned above, the requisite material facts as noted above in the reasons for reopening were embedded in such a manner that material evidence could not be discovered by the AO and could have been discovered with due diligence, according ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of four years from the end of relevant assessment year i.e 2011-12. The regular assessment was completed under Section 143(3) of the Act. Thus, in view of the clear mandate of the first proviso to Section 147 of the Act, reopening notice on the above facts can only be sustained if there has been a failure on the part of the assessee to truly and fully disclose all material facts necessary for assessment. 5. Bare reading of the reasons in support of the impugned notice would make it evident that there has been a complete disclosure of all material facts on the part of the petitioner in the regular assessment proceedings under Section 143(3) of the Act. This is so as the basis of the notice as indicted in the reasons is information co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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