TMI Blog2022 (6) TMI 807X X X X Extracts X X X X X X X X Extracts X X X X ..... rnished by the assessee were insufficient for the AO to discover escaped income despite exercise of due diligence - HELD THAT:- Explanation-1 circumscribes the aforesaid exception (ii) that if the material and account books produced by the assessee for the relevant assessment year are such where despite exercise of due diligence, the Assessing Officer could not discover escaped income then such disclosure would not provide immunity to assessee from the clutches of Section 147 of the IT Act. The reasons assigned by the Assessing Officer in Annexure P/7 dated 04.02.2022 is that the material and accounts books furnished qua the relevant assessment year were insufficient despite exercise of due diligence to discover escaped income. The conte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lenge is made to the rejection vide Annexure P/7 of the reply objecting to the re-opening of assessment. 2. Learned counsel for petitioner and that of the Revenue are heard on the question of admission so also on final disposal. 3. The principal contention of learned counsel for petitioner is that in the light of proviso to Section 147 of the IT Act, assessment proceedings cannot be re-opened after expiry of four years from the end of the relevant assessment year and since the relevant assessment year in the instant case was 2013-14, the notice vide Annexure P/3 issued on 27.03.2021 is non est in the eyes of law. 4. Learned counsel for the Revenue on the other hand has read over the rejection of objection filed by petitioner vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year): Provided that where an assessment under sub-section (3) of section 143 or this section has been made for the relevant assessment, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under subsection (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssive loss, deduction, allowance or relief in the return; [(ba) where the assessee has failed to furnish a report in respect of any international transaction which he was so required under section 92E;]. (c) where an assessment has been made, but- (i) income chargeable to tax has been underassessed; or (ii) such income has been assessed at loo low a rate; or (iii) such income has been made the subject of excessive relief under this Act; or (iv) excessive loss or depreciation allowance or any other allowance under this Act has been computed.] [(ca) where a return of income has not been furnished by the assessee or a return of income has been furnished by him and on the basis of information or document recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me chargeable to tax had escaped assessment for any assessment year by reason of failure of the assessee to make a return u/S 139 of the IT Act, or ii) Failure of the assessee to disclose fully and truly all material facts necessary for assessment for the particular assessment year. 6.1 The Explanation-1 circumscribes the aforesaid exception (ii) that if the material and account books produced by the assessee for the relevant assessment year are such where despite exercise of due diligence, the Assessing Officer could not discover escaped income then such disclosure would not provide immunity to assessee from the clutches of Section 147 of the IT Act. 7. The reasons assigned by the Assessing Officer in Annexure P/7 dated 04.02 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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