TMI Blog2021 (7) TMI 991X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 147 shall be made beyond the period of four years and within six years. This being the scope of Section 147 for reopening of assessment, this Court do not find any acceptable reason for the purpose of interfering with the reopening proceedings initiated by the authorities competent and it is for the petitioner to participate in the assessment/re-assessment proceedings and defend his case in the manner known to law. - W.P.No.27810 of 2018 And W.M.P.No.32321 of 2018 - - - Dated:- 2-7-2021 - Honourable Mr.Justice S.M. Subramaniam For the Petitioner : Mr.R.Sivaraman For the Respondent : Mr.D.Prabhu Mukunth Arunkumar, Standing Counsel ORDER The writ on hand is filed challenging the notice dated 29.03.2018 issued by the respondent under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). 2.The petitioner/assessee is an individual and a practising Chartered Accountant rendering his professional services as Partner of the firm, M/s.Venkat Vasan, based out of Chennai. The assessee was assessed to income tax on the file of the respondent. The assessee filed his original return of income on 30.09.2011, for the assessment y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of income. The notice under Section 142(1) of the Act was issued on 15.07.2013 along with the questionnaire. The petitioner submitted his reply on 30.08.2013 wherein, he has clearly stated that he sold his earlier residential house property at New No.44, Old No.27, Parangusapuram Street, Kodambakkam, Chennai-600 024 and reinvested the capital gain in another house property at No.46, Balakrishna Naicken Street Extn., West Mambalam, Chennai-600 033. Thus, the assessee claimed exemption under Section 54 of the Act and he enclosed the copies of the documents. During the year ended 31.03.2011, the assessee has redeemed and sold mutual funds as well as shares. The assessee enclosed statements from the mutual funds as well as contract note from the broker in support of the same. Regarding the professional income, as Chartered Accountant, the assessee has stated that he was a partner of M/s.Venkat Vasan Chartered Accountants, Chennai and he enclosed copy of the audited income and expenditure account, balance sheet, partners capital accounts and current accounts, computation of total income and ITRV of the said firm, which will explain the details of the remuneration drawn by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stablish that the assessee has not furnished the informations truly and fully and therefore, the reopening of proceedings initiated is well within the scope of Proviso clause to Section 147 of the Act and thus, the writ petition is liable to be rejected. 10.To substantiate the said ground, the learned Standing Counsel solicited the attention of this Court with reference to the reasons furnished for reopening of assessment in proceedings dated 07.05.2018. Undoubtedly, the petitioner has furnished informations. However, certain other particulars, which all are required to be furnished, were not furnished during the original assessment and the learned Standing Counsel referred to the reasons provided in Clause III of the reasons for reopening dated 07.05.2018, which reads as hereunder:- III. Investment in pursuance of house property The above said property was purchased on 16.02.2011 for ₹ 3,05,20,240 including the stamp duty and registration fee and availed exemption u/s-54 for the property sold on 18.02.2011 for ₹ 3,30,00,000. The payment for purchase of the said new property was made prior to the existing property sold as follows:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered by the Assessing Officer. However, this Court has to consider whether the reopening of proceedings in the case on hand is sustainable with reference to the Proviso clause to Section 147 of the Act. If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment and the reopening is to be done beyond the period of four years and within six years, then the Assessing Officer must have materials to establish that the assessee had not disclosed fully and truly all material facts necessary for his assessment. Thus, disclosure of material facts fully and truly is the pre-condition for reopening of proceedings under Section 147 of the Act beyond the period of four years and within a period of six years. 14.Let us examine, whether the mandatory requirements have been complied with in the present case or not. 15.Perusal of the reply/objections by the petitioner, it is seen that the petitioner has given details regarding the queries raised by the Assessing Officer. However, the reasons for reopening would reveal that mere information provided by the assessee in the present case was not full and true disclosure in respect of investment an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nquire the only issue of AO to examine taxability of sale of property. Hence the scrutiny assessment was limited only to the issue of capital gains on sale of property. Therefore, the issues such as source for purchase of new immovable property, whether all receipts are treated as income etc., were not examined during the course of original assessment. 18.It is submitted that the first issue in the reasons for re-opening is non-disclosure of income from three parties as fee for technical services. Petitioner claims that he has furnished explanations for the same during the course of original assessment proceedings. A look at the notice u/s 143(2) and 142(1) with annexure dated 15.07.2013 annexed clearly reveals that AO never required the petitioner to clarify on this issue. No other notice was issued to the petitioner during the course of original assessment proceedings seeking clarification on the issue. Even the order sheet notings annexed reflecting subsequent hearings does not show AO making any requirement regarding claiming reconciliation of these receipts. Even otherwise, claiming credit for TDS on these receipts in the hands of petitioner where income there from was c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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