TMI Blog2023 (2) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... erial facts, however, there is no substance in such allegation. 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 orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment proceedings, again initiating income escaped assessment proceedings without any tangible material is a mere change of opinion , thus reassessment proceedings initiated u/s. 147 is without jurisdiction, thus assessee prays that the income escaped assessment order dated 16/03/2022 passed u/s. 147 r.w.s. 144B deserves to be quashed. 3. 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 after lapse of nearly six years from the end of the relevant assessment year on the basis of audit objection and reasons to believe was recorded on borrowed facts without application of mind thus reassessment proceedings are with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee craves the right to amend, add, delete, replace, all or any of the grounds of appeal either during the course of hearing or at any time before hearing of this appeal 3. Briefly the facts are, the assessee is a resident corporate entity. For the assessment year under dispute, assessee filed its return of income on 30.10.2015 declaring income of Rs.2,44,840. The return of income so filed by the assessee was selected for scrutiny under CASS and assessment was completed under Section 143(3) of the Act vide order dated 16.11.2017 determining total income at Rs.5,18,020. Subsequently, as observed by the Assessing Officer in the body of the assessment order, during test-check of assessment record for the impugned assessment year, it wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act is invalid as the Assessing Officer has failed to establish that there is failure on the part of the assessee to disclose truly and correctly all material facts relating to its assessment. Drawing my attention to the reasons recorded for reopening of assessment, learned counsel submitted, apart from making bald allegations, the Assessing Officer has failed to establish on record that there is failure on the part of the assessee to disclose truly and correctly all material facts necessary for its assessment. He submitted, the reasons recorded as well as observations made in the assessment order clearly reveal that the Assessing Officer has proceeded to initiate proceedings under Section 147 of the Act without having any tangible mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ario, the proviso to section 147 of the Act, as applicable to the impugned assessment year, would come into play. As per the said proviso, in a case where the original assessment has been completed either under Section 143(3) or under Section 147 of the Act, no reopening of assessment can be made unless there is failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment. On perusal of the impugned assessment order as well as reasons recorded, it is very much clear that the Assessing Officer has observed that during the test-check of assessment record for the impugned assessment year, it came to his notice that the assessee has made certain cash payment in violation of section 40A(3) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n any case of the matter, the Assessing Officer has failed to establish any failure on the part of the assessee to declare truly and correctly all necessary facts for its assessment. Therefore, conditions enshrined in proviso to section 147 of the Act, applicable to the impugned assessment year, are not satisfied. The decisions relied upon by the learned counsel for the assessee support the aforesaid view. Accordingly, I hold that reopening of assessment under Section 147 of the Act in the instant case is invalid. Consequently, the assessment order passed in pursuance thereto has to be held as invalid. Accordingly, I quash the impugned assessment order. As a natural corollary, the impugned order of learned Commissioner (Appeals) deserves to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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