TMI Blog2022 (6) TMI 1274X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the assessee to disclose all facts regarding the items in the return of income or books of account during the assessment proceeding, is not justified and is in violation to proviso to section 147. Thus reopening of assessment is invalid and is accordingly quashed. Decided in favour of assessee. - I.T.A. Nos. 2426, 2427 & 2428/Kol/2019, C.O. Nos. 2, 3& 4/Kol/2020 (Arising out of I.T.A. Nos. 2426, 2427 & 2428/Kol/2019) - - - Dated:- 27-6-2022 - Shri Sanjay Garg, Judicial Member And Shri Rajesh Kumar, Accountant Member For the Appellant : Shri Vijyaneshwar Nath Datta, Advocate For the Respondent : Shri Avijit Kundu, CIT ORDER PER SHRI RAJESH KUMAR, AM: These three appeals by the revenue and three cross-obj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to requirement of law, invalid and bad in law since the assessee disclosed truly and fully in the original assessment proceedings as well as the AO had not brought any fresh tangible material records. 3. For that the reopen of the assessment on the basis of audit objection is not tenable in law and opposed to requirement of law. 4. For that non-supply of the recording of the reasonable belief as well as the satisfaction recorded of the higher authority the reassessment order is opposed to requirement of law, bad in law and liable to be annulled. 5. For that the reopen of the assessment is nothing but change of opinion which is not permissible in law resulting in the reassessment order is opposed to requirement of law, not t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ish various details and evidences to justify these expenses of interest which was duly replied with evidences. Finally the assessment was framed u/s 143(3) r.w.s 147 of the Act by the AO by making an addition on account of interest on accumulated interest of Rs. 11,57,07,636/- and prior period expenses Rs. 6,24,77,828/-. 5. Aggrieved assessee challenged the order of AO before the First Appellant Authority on jurisdictional issue as well as on merits. The First Appellate Authority partly allowed the appeal of the assessee without giving any findings on the legal issue raised by the assessee. 6. The Ld. AR vehemently submitted before us that the Ld. CIT(A) has erred in not giving any clear cut findings on the jurisdictional issue raised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has validly been reopened on the basis of information as supplied by the assessee during original assessment proceedings. On the arguments of the ld AR about absence of any whisper about the assessee failure to disclose any material facts relating to income in terms of 1st proviso to section 147 of the Act, the ld. DR argued that the AO has recorded the reasons that income has escaped assessment and it is not incumbent upon the AO to specify in the reasons recorded that failure of the assessee. The Ld. D.R finally prayed that the cross objection of the assessee may be dismissed. 8. We have heard rival contentions and perused the material on record carefully. The undisputed facts are that the case of the assessee was reopened u/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so to section 147 of the Act. The case of the assessee finds support from the decision of New Delhi Television Ltd. vs DCIT (supra) wherein it has been held that where the assessee has disclosed all material facts qua the issuance of convertible bonds, thus there was no failure on the part of the assessee to disclose material facts and therefore notice issued to the assessee u/s 147 of the Act after a period of 4 years has been quashed. Similarly in the case of CIT vs Multiplex Trading Industrial (supra), the Hon ble Delhi High Court has held that since the assessee has disclosed all the material facts at the time of making assessment, initiation of reassessment proceedings after expiry of four years from the end of relevant assessment y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /Kol/2019, CO:02/Kol/2020 Assessment Years : 2011-12 where have decided the legal issue in CO in favour of the assessee and dismissed the appeal of the revenue. Accordingly our decisions in I.T.A. Nos. 2426/Kol/2019, CO:02/Kol/2020 Assessment Years : 2011-12 would , mutatis mutandis, apply to these appeal of the revenue as well as CO of the assessee. Consequently the CO of the assessee is allowed and appeal of the revenue is dismissed. I.T.A. Nos. 2428/Kol/2019, CO:04/Kol/2020 Assessment Years : 2013-14: 12. At the outset, the ld counsel of the assessee submitted before the bench that this appeal and cross objections are arising out of the order passed by ld CIT(A) dated 03.08.2019 which in turn arise out of the assessment framed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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