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TMI Blog2021 (7) TMI 991X X X X Extracts X X X X X X X X Extracts X X X X ..... 08.2012. The respondent issued notices under Section 142(1) along with questionnaire and 143(2) read with Section 129 of the Act on 15.07.2013, calling for various details and granting opportunity to attend and explain the income declared during the assessment year 2011-12. 3.The assessee states that he filed all the details called for by the Assessing Officer from time to time. Complete set of details and relevant particulars were furnished to the Assessing Officer along with explanations pertaining to the professional fee receipts, purchase and sale of land etc. The Assessing Officer, on satisfaction, passed the final assessment order under Section 143(3) of the Act on 20.01.2014. Shockingly after a lapse of four years, the respondent issued the impugned notice under Section 148 of the Act on 29.03.2018. The assessee requested for reasons for reopening of assessment on 26.04.2018. The reasons for reopening of assessment were furnished by the respondent in proceedings dated 07.05.2018. In response, the assessee submitted his detailed objections to the reasons for reopening of assessment, vide letter dated 12.05.2018, and the said objections were considered and an order dated 07 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia Ltd., and Turbo Energy Ltd., as well as TDS recoveries therefrom are reflected. Right from the inception, these companies have been retaining the assessee in his personal name and paying professional fees in his personal name every month. Since all his professional practice is only through the firm M/s.Venkat & Vasan, these professional fees are also included in the professional fees receipts of the firm M/s.Venkat & Vasan Chartered Accountants and they are only claiming credit for the corresponding TDS recovery. Further, the assessee enclosed copies of the housing loan statement of account of State Bank of India as well as India Bulls Housing Finance Ltd., in support of the claim for deduction for housing loan interest against income from property. 7.The learned counsel for the petitioner, furnishing all these details, made a submission that the documents, informations and details were looked into by the Assessing Officer and the final order of assessment was passed. Thus, the initiation of reopening proceedings beyond the period of four years is untenable. Even after issuance of notice under Section 148, the petitioner provided all the documents and informations to the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 8,88,468 for contract as per 26 AS, the balance of Rs. 2,00,18,572 has to be explained. Under the above circumstances, the unexplained investment in the new house property for claiming exemption u/s.54 has to be brought to tax u/s 69 of the ACT. Rs. 2,00,18,572/-" 11.The learned Standing Counsel referred to the disposal of the objections by the Assessing Officer in proceedings dated 07.09.2018. It is contended that the earlier proceedings made in the case of the assessee was limited scrutiny on the question of taxability of sale property. The issue considered in the limited scrutiny was only the funds received by the assessee by way of sale proceeds and taxability under the head "capital gains on sale of property." The initiation of reopening proceedings relates to outgoing of funds in the form of investment in property and mutual funds. Since such issue was not discussed in the original assessment proceedings, no opinion was formed on these issues in such proceedings and hence, there is no change of opinion. 12.The learned Standing Counsel relied on Explanation 1 to Section 147 of the Act and contended that mere production of details and books of accounts before the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claiming exemption under Section 54 has to be brought to tax under Section 69 of the Act. The total income/investment escaped assessment was calculated as Rs. 2,34,27,280/-. Therefore, certain intricacies with reference to the informations and details provided by the assessee at the time of original assessment were culled out and the Assessing Officer has reason to believe that the said informations were not furnished truly and fully by the assessee at the time of original assessment. Thus, he has formed an opinion that the income/investment escaped assessment is Rs. 2,34,27,280/-. With these reasons, the Assessing Officer considered the objections and passed an order dated 07.09.2018, disposing of the objections wherein also, he has stated that it is a limited scrutiny, which was done earlier and the proceedings are reopened now regarding the outgoing of funds in the form of investment in property and mutual funds. The said position in the order is substantiated by way of counter affidavit and it is relevant to extract paragraphs 16, 17, 18, 19 and 20 of the counter affidavit, which all are extracted hereunder:- "16.It is submitted that as far as the merits of the issue is cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aterial facts necessary for assessment during the course of original assessment proceedings. Hence reopening of assessment u/s 147 is valid. 20.It is submitted that the initiation of reassessment proceedings relates to the outgoing of funds in the form of investment in property and mutual funds and also the professional receipts of the assessee which were never the subject matter of the original assessment. The present reassessment proceedings is made in accordance with law as per the full bench decision reported in 248 ITR 485 (DEL)." 16.This Court is of the considered opinion that when there are certain discrepancies with reference to the informations provided and the Assessing Officer has reason to believe that certain informations were not furnished truly and fully in respect of the informations provided at the time of assessment then also, the authority competent is empowered to reopen the proceedings. In this regard, it is relevant to consider Explanation 1 to Section 147 of the Act, which states that production before the Assessing Officer of account books or other evidence from which material evidence could due diligence have been discovered by the Assessing Officer will ..... X X X X Extracts X X X X X X X X Extracts X X X X
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