TMI Blog2019 (9) TMI 491X X X X Extracts X X X X X X X X Extracts X X X X ..... gs, the same can only be regarded as having been examined thereat by the assessing authority, who though chose not to make any disallowance u/s. 40A(3). Reference to the said account in the instant proceedings, thus, amounts to a review, a change of opinion, impermissible in law. The argument, valid in principle, would however require the assessee to show that it was show caused qua the impugned disallowance (u/s. 40A(3)), or otherwise queried in its respect, in the original proceedings. And which has not been at any stage. The Revenue has thus not been able to show the assessee s failure to disclose the relevant facts, only which would qualify its action for reopening as valid in law, with, on the contrary, the assessee exhibiting othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2015 on the ground that the coal freight account for the year revealed freight payments, aggregating to ₹ 2,36,755/-, made in contravention of sec. 40A(3), which had been omitted to be disallowed while framing the original assessment u/s. 143(3). The assessee failing to prove that the cash payments to the truck drivers had in fact been made in sums of ₹ 19,000/- each over several days, as claimed, the Assessing Officer (AO) effected the disallowance thereof. The assessee challenged the same on several grounds, including the validity of the notice u/s. 148(1) dated 10.12.2015 and, thus, of the reassessment proceedings, on the ground that the said notice, issued after four years from the end of the relevant assessment year, could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant assessment year, in a case where the assessment for the relevant year had earlier been made u/s. 143(3), as in the instant case, the said notice can be issued only where there is, inter alia , a failure on the part of the assessee to disclose fully and truly all material facts necessary for the computation of his income for the relevant year (refer first proviso to s. 147). Now, to begin with, there is no allegation in its respect either in the reasons recorded or even in the ensuing assessment order. In fact, even where made, it would not hold as the statement of coal freight account relied upon by the AO in forming his reason to believe an escapement of income from assessment on account of non-disallowance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can only be regarded as having been examined thereat by the assessing authority, who though chose not to make any disallowance u/s. 40A(3). Reference to the said account in the instant proceedings, thus, amounts to a review, a change of opinion, impermissible in law. The argument, valid in principle, would however require the assessee to show that it was show caused qua the impugned disallowance (u/s. 40A(3)), or otherwise queried in its respect, in the original proceedings. And which has not been at any stage. The Revenue has thus not been able to show the assessee s failure to disclose the relevant facts, only which would qualify its action for reopening as valid in law, with, on the contrary, the assessee exhibiting ..... X X X X Extracts X X X X X X X X Extracts X X X X
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