9911796707
TMI Blog2023 (2) TMI 927X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax Act, 1961 ('the Act') seeking to reopen the petitioner's assessment for the assessment year 2015-16. The petitioner also challenges the order dated 21st July 2022 passed by the respondent No.1, whereby the objections to the reopening of the assessment have been disposed of. 2. Briefly stated the material facts are as under : 2.1 The petitioner fled a return of income for the assessment year 2015-16. The case was subsequently selected by Computer Assisted Scrutiny Selection (CASS) for scrutiny assessment. Notices were issued under section 143(2) of the Act on 17th March 2016 and subsequently under section 142(1), dated 23rd January 2017. Necessary information and details were fled pursuant to such notices including the petitioner's c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rofit as per the P & L Account (in the computation), before allowing the deduction under section 35(2B) of Rs.1,63,40,354/-. This has resulted in excesses allowance of deduction under section 35(2B) of the tune of Rs.91,61,341/-. 3. Since 4 years from the end of the relevant year have expired in this case, the requirement to initiate proceedings under section 147 of the Act are reason to believe that income for the year under consideration has escaped assessment because of failure on the part of the assessee to disclose fully and truly all material facts necessary of his assessment for the assessment year under consideration. 4. It is true that the assessee has filed a copy of audited P & L account and balance sheet along with return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the petitioner had made full disclosure of all material facts which were gone into by the Assessing Officer leading to the passing of the order under section 143 of the Act. It was urged that there was no failure on the part of the assessee to disclose fully and truly material facts necessary for the purpose of assessment which was a jurisdictional pre-condition which onus has not been discharged by the Assessing Officer under section 147 of the Act illegal and bad in law. 5. Counsel for the revenue, on the other hand, generally supported and buttressed the view expressed by the Assessing Officer in the order impugned dated 21st July 2022. 6. The question that arises for consideration in the present case is whether the jurisdictional pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be improved subsequently nor added in the reply or in the subsequent pleadings. 9. Admittedly, this was a case where an order of assessment under section 143(3) had been passed for the relevant assessment year. As per the ratio of the judgment in Hindustan Lever Ltd. V/s. R. B. Wadkar, Assistant Commissioner of Income-Tax and Ors. 2004 ITR 332 Vol.268., the AO was obliged to disclose as to which fact or material was not disclosed by the Assessee fully and truly for the purposes of assessment of that assessment year so as to establish a vital linkage between the reasons and the evidence. In the present case, the jurisdictional condition has not been satisfied by the AO, except having made a bald statement that the material facts were not di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not right in allowing deduction under Section 80I because he had allowed the deductions wrongly and, therefore, he was of the opinion that the income had escaped assessment. Though he has used the phrase "reason to believe" in his order, admittedly, between the date of the orders of assessment sought to be reopened and the date of forming of opinion by the Income-tax Officer nothing new has happened. There is no change of law. No new material has come on record. No information has been received. It is merely a fresh application of mind by the same Assessing Officer to the same set of facts. While passing the original orders of assessment the order dated February 28, 1994, passed by the Commissioner of Income-tax (Appeals) was before the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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