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TMI Blog2023 (2) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... out appreciating the fact that reasons to believe recorded by the AO was silent regarding any fault on the part of the assessee to disclose fully and truly all material facts necessary for assessment thus proviso to section 147 was not satisfied, thus, income escaped assessment proceedings are without jurisdiction, accordingly assessee prays that the income escaped assessment order dated 16/03/2022 passed u/s. 147 r.w.s. 144B deserves to be quashed. 2. That on the facts, and in the circumstances of the case and in law, CIT(A) erred in sustaining income escaped assessment proceedings initiated against the assessee u/s. 147 without appreciating the fact that same issue was examined during the scrutiny assessment proceedings, again initiatin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of mind, accordingly issuing section 148 notice was without jurisdiction thus reassessment order dated 16/03/2022 deserves to be quashed. 6. That based on the facts, and in the circumstances of the case and in law, CIT(A) erred in sustaining addition amounting Rs.2,12,,000/- under Section 40A(3) without appreciating the fact that disallowance made u/s. 40A(3) amounting Rs.2,12,000/- was not high value payments and no evasion of tax was made by recording false or fictitious transactions rather profit for the current assessment year was increased in comparison to the last previous year thus assessee prays for deletion of disallowance made u/s. 40A(3) amounting to Rs.2,12,000/-. 7. That the assessee craves the right to amend, add, del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... while making cash payment, the assessee has violated the provisions of section 40A(3) of the Act. Thus, he completed the assessment by adding back the amount of Rs.2,21,000 to the income of the assessee by invoking the provisions of section 40A(3) of the Act. Against the assessment order so passed, assessee preferred an appeal before learned Commissioner (Appeals), inter alia, challenging the validity of reopening of assessment under Section 147 of the Act. However, learned Commissioner (Appeals) did not find merit in the grounds raised. Accordingly, he dismissed the appeal. 4. Before me, first contention of learned counsel for the assessee is, the reopening of assessment under Section 147 of the Act is invalid as the Assessing Officer has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not disclose all material facts truly and correctly, therefore, the proviso to section 147 would not apply. 8. I have considered rival submissions in the light of decisions relied upon and perused the material available on record. 9. Undisputedly, original assessment in case of assessee was completed under Section 143(3) of the Act vide order dated 16.11.2018. Whereas, reasons for reopening of assessment were recorded by the Assessing Officer on 28.03.2021 and notice under Section 148 of the Act was issued on 30.03.2021. Thus, it is quite obvious, the action for reopening of assessment was taken after expiry of four years from the end of the relevant assessment year. In such a scenario, the proviso to section 147 of the Act, as applicab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that in course of original assessment proceedings, the Assessing Officer had specifically enquired into the details of payments made to Monad University and rent. In reply to the query raised, the assessee had furnished its reply vide letter dated 30.01.2017. Thus, it is evident, in course of the original assessment proceedings the Assessing Officer did make inquiry regarding the cash payment and took a conscious decision that no violation to section 40A(3) of the Act was made. That being the factual position emerging on record, in my view, the proceeding initiated under Section 147 of the Act is on a mere change of opinion, hence, amounts to review of the earlier assessment order. In any case of the matter, the Assessing Officer has fail ..... X X X X Extracts X X X X X X X X Extracts X X X X
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