TMI Blog2019 (6) TMI 747X X X X Extracts X X X X X X X X Extracts X X X X ..... ooks of account. Therefore, there is no failure on the part of the petitioner to disclose fully and truly all material facts necessary for its assessment. It follows as a natural corollary that in the absence of any failure on the part of the petitioner to disclose fully and truly all material facts necessary for its assessment for the assessment year under consideration, the assumption of jurisdiction on the part of the AO beyond a period of four years from the end of the relevant assessment year is invalid and without authority of law. As during the course of scrutiny assessment AO had applied his mind to this very aspect and had called for details from the petitioner in respect of the amount deposited with the Dhule Police Station and after considering the explanation tendered by the petitioner did not make any addition in that regard. Evidently, therefore, the AO seeks to reopen the assessment on a mere change of opinion and hence, even on this count the assumption of jurisdiction on the part of the AO is bad in law. - Decided in favour of assessee. - R/SPECIAL CIVIL APPLICATION NO. 13517 of 2018 - - - Dated:- 8-4-2019 - MS HARSHA DEVANI AND MR BHARGAV D. KARIA, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reopening the assessment, to submit that the Assessing Officer seeks to reopen the assessment on the ground that the Dhule Police had seized cash of ₹ 1.33 crore from six persons on 24.6.2010, out of which cash of ₹ 46,00,000/- was seized in the case of the petitioner. That on the basis of the information received from the DDIT (Inv.) Unit-1(1) Ahmedabad, the Assessing Officer had found that the cash seized was not reflected in the books of account and that the assessee had failed to disclose the unaccounted cash and, therefore, the Assessing Officer has formed the belief that income chargeable to tax to the extent of ₹ 46,00,000/- had escaped assessment. 5.1 It was submitted that the reasons recorded for reopening the assessment are de hors the record, inasmuch as, the petitioner has fully and truly disclosed the amount of ₹ 46,00,000/- in its books of account. It was further submitted that during the course of scrutiny assessment, the Assessing Officer had gone into this issue and had thereafter not made any addition in that regard and hence, the Assessing Officer seeks to reopen the assessment on a mere change of opinion. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat, therefore, it is evident that the Assessing Officer has placed reliance upon the material other than the material on record and has also formed the belief that the petitioner had not disclosed any unaccounted cash in the books of account, under the circumstances, the reopening of assessment beyond a period of four years from the end of the relevant assessment year is wholly justified and that there is no warrant for interference by this court. 7. This court has considered the submissions advanced by the learned counsel for the respective parties and has perused the record as placed before the court. 8. From the reasons recorded, it is evident that the Assessing Officer seeks to reopen the assessment on the ground that he has received information that the Dhule Police had seized cash of ₹ 1.33 crore from six persons on 24.6.2010 out of which cash of ₹ 46,00,000/- was seized from the petitioner. According to the Assessing Officer, the cash seized from the petitioner is not reflected in the books of account and, therefore, the assessee has failed to disclose such unaccounted cash. In this regard, a perusal of the record of the case reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer, during the course of scrutiny assessment, as well as on a perusal of the schedule forming part of the accounts for the year ended 31.3.2011, it is clear that the petitioner had shown the amount of ₹ 46,00,000/- seized by the Dhule Police in the books of account. Under the circumstances, the observation made by the Assessing Officer that the assessee has failed to disclose the unaccounted cash is clearly contrary to the record of the case. 11. In this case, earlier an assessment had been framed under section 143(3) of the Act for assessment year 2011-12. The impugned notice under section 148 of the Act has been issued on 28.3.2018, which is clearly beyond a period of four years from the end of the relevant assessment year, and therefore, the first proviso to section 147 of the Act would be attracted, consequently, the assessment can be reopened only if there is any failure on the part of the petitioner to disclose fully and truly all material facts necessary for its assessment for the year under consideration. It would therefore, be necessary to refer to the reasons recorded to ascertain as to whether the Assessing Officer has recorded any su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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