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TMI Blog2023 (5) TMI 840X X X X Extracts X X X X X X X X Extracts X X X X ..... a sum of Rs.13,15,520/- 2. Sustaining the addition made by the Assessing Officer to the extent of Rs. 34,02,000/- on account of alleged bogus purchases. All the actions being erroneous, unlawful and untenable it is prayed that the same may be quashed with directions for appropriate relief." 3. Brief facts of the case as mentioned in the order of the CIT(A) are that, the assessee is stated to be engaged in the business of trading and chemicals in the name of M/s Arco Chem. The return of income filed by the assessee declaring income of Rs. 6,71,790/-, the case of the assessee was selected for scrutiny and was assessed at total income of Rs.7,07,886/-. Subsequently, the case was reopened by issuing notice u/s 148 of the Act on the basis of information received from DDIT, Investigation, New Delhi regarding frequent high- value cash deposits, transfer and RTGS credit followed by immediate transfer and RTGS debits leaving minimum balance in the account number 911020010105859 held in the name of M/s Astro Informatics. The total turnover of the entity in a span of 10 months was over Rs.26.26 crores but no ITR was filed. During the year under consideration, the assessee had received ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ub grounds, submitted that the issuing notice u/s 148 of the Income Tax Act is without jurisdiction and the same is barred by limitation. Initiation of the proceedings u/s 147/148 of the Act without their being any satisfaction and material on record, therefore, the authorities have committed error in passing the impugned order. The Ld. Counsel for the assessee had taken us through the various judicial pronouncements and also filed written submission in support of the oral submissions. 7. On the other hand, the Ld. DR submitted that the notice u/s 148 of the Act has been issued in conformity with the provisions of Income Tax Act and to achieve the true object of the provisions of the Act and re-assessment proceedings has been initiated based on the information received from DDIT (Investigation), New Delhi, wherein it was noticed that frequent high value cash deposits have been done in the account of M/s Astro Informatics, the assessee being one of the beneficiaries of the said dummy/Shell company, which has provided accommodation entries to the assessee, which has been conclusively proved by the Department, therefore, submitted that the order of the CIT(A) in restricting the addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the information provided, it is clear that the assessee has tried to account for his unaccounted money which is nothing but an accommodation Therefore the same is treated as undisclosed income of the assessee and is liable to taxed in the hands of the assessee. In view of the above, the provision of clause (a) of Explanation 2 to section 147 are applicable to facts of the case and it is a fit case where income chargeable to tax has escaped assessment. In this case the four years but not more than six years have elapsed from the end of the assessment year under consideration and income chargeable to tax which has escaped assessment is more than Rs. 1 lacs necessary sanction to issue notice u/s 148 of the Act is being obtained separately from the Pr. Commissioner of Income Tax-13, Delhi under amended provisions of section 151 of the Actw.e.f. 01-06-2015. Therefore, as per above findings the undersigned has reason to believe that income of Rs. 63,98,622/- has escaped assessment and is chargeable to tax for the year under consideration." 9. The above reasons recorded for reopening does not depicts anything regarding 'failure of the assessee to disclose fully and truly all materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ears from the end of relevant assessment year. Bare reading of reasons recorded for reopening for the Assessment Year 2012-13 and also the reassessment order at no point of time the A.O alleged that there was a failure on the part of the assessee to disclose fully and truly material facts necessary for his assessment at the time of original assessment. Thus, in our opinion, the proceedings initiated u/s 147/148 is amounts to making of roving enquiries of the settled matter which has already became final in the original assessment after due verification and examination. The various Courts and the Tribunal have held that the reassessment proceedings initiated beyond four years from the end of the relevant assessment year to be in valid in terms of proviso to Section 147 of the Act where there was no failure on the part of the Assessee to disclose fully and truly all the material facts necessary for the assessment. 12. The assessee has also relied on various judicial pronouncements in support of his contention. The Hon'ble Apex Court, in the decision in Commissioner of Income Tax and Another v. Foramer France [2003 Vol.264 ITR 566], while dismissing the appeal filed by the Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in favour of the assessee/petitioner. 10. The position that a mere change of opinion would not entitle an Assessing Officer to reopen a completed assessment is well settled. The latest decision being of the Supreme Court in Civil Appeal No.2009-2011 of 2003 and Civil Appeal No. 2520 of 2008 decided on 18th January, 2010 which approves this Court‟s Full Bench decision in the case of Commissioner of Income Tax vs. Kelvinator of India Limited:256 ITR 1 (Del.) (HC). The power of re-assessment is different from the power of review. The Assessing Officer has been given the power to re-asses under Section 147 upon certain conditions being satisfied. The Assessing Officer does not have the power of review. If a change of opinion were to be permitted as a ground for re-assessment then it would amount to granting a licence to the Assessing Officer to „review‟ his decisions, which power he does not have. 11. Consequently, holding that initiation of the proceedings in question was based entirely on change of opinion, we find that the re-assessment proceedings are without jurisdiction. The notices under Section 147/148 of the said Act and the proceedings pursuant thereto ..... X X X X Extracts X X X X X X X X Extracts X X X X
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