TMI Blog2023 (10) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. The order rejecting the objections of Petitioner in fact supports the contention of Petitioner in respect of him furnishing all documents and relevant information, but simply discards the same by stating that even if there is no fresh material, but the information placed on record is such that it is difficult to be detected. The rejection order further cites a number of precedents of various Courts which are wholly inapplicable to the facts of the present case, being on a justification as to how the facts in the present case do not suggest a change of opinion The reasons for rejection of the objections raised by petitioner are without any substance and hence untenable. We are firmly of the view that there is no failure on the part of Petitioner in making full and true disclosure to the AO during the original assessment leading to a possibility of application of the provisions of Section 2(22)(e) of the Act resulting in a substantial tax effect. Decided in favour of assessee. - K.R. SHRIRAM NEELA GOKHALE, JJ. For the Petitioner : Mr. B.V. Jhaveri, with Mr. S. Sriram Ms. Bhargavi Raval. For the Respondents : Mr. Suresh Kumar. JUDGMENT (PER NEELA GOKHALE, J.): 1. Petitioner assa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 147 of the I.T. Act. Hence, I have reason to believe that the income has escaped assessment. Notice u/s. 148 is being issued separately. Sd/- (PRASOON KABRA) Dy. Commissioner of Income-tax-7(3) Mumbai 4. Petitioner filed objections dated 3rd October 2013 to the reasons recorded by the AO for reopening the assessment of income for the assessment year under consideration. However, vide order dated 8th January 2014, the AO rejected the objections raised by Petitioner and proceeded to issue notice under Section 142(1) of the Act on 10th January 2014. Petitioner replied to the said notice on 17th January 2014 once again reiterating that the reasons to believe for reopening the assessment are not tenable on the ground that Petitioner had made full and true disclosure of all the material facts at the time of his original assessment and the notice under Section 148 of the Act reopening the assessment was illegal and an arbitrary exercise of jurisdiction by the AO. It is this notice which is impugned in these proceedings. 5. Mr. B. V. Jhaveri, learned Counsel appears for Petitioner and contests the said notice on the ground that firstly, the notice is issued beyond a period of four ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ormation, the deeming provision of Section 2(22)(e) of the Act, if applied, could have resulted in substantial tax effect. On this ground alone, Mr. Suresh Kumar justifies the impugned notice and alleges that relevant material was concealed by Petitioner. 7. Heard both the Counsels and perused the documents on record with their assistance. 8. Admittedly, the impugned notice under Section 148 of the Act has been issued more than four years after the expiry of the relevant assessment year and the assessment under Section 143(3) of the Act was completed. It is trite that the AO can reopen an assessment if he has reason to believe that undisclosed income has escaped assessment. But where the notice under Section 148 of the Act is issued after expiry of four years of the relevant assessment year, the proviso to Section 147 of the Act would apply and it specifically provides for its application only if the assessee fails to make a true and full disclosure of material facts at the time of assessment. Thus, the proviso to Section 147 of the Act will apply in this case and there is a bar in reopening of assessment unless there is a failure to truly and fully disclose material facts. The not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the matter of Ananta Landmark Pvt. Ltd. v. Deputy Commissioner of Income Tax Ors (2021) 131 taxmann.com 52 Bombay., has also held as under: .that when the primary facts necessary for assessment are fully and truly disclosed, the assessing officer is not entitled on change of opinion to commence proceedings for reassessment and where on consideration of material on record, one view is conclusively taken by the assessing officer, it would not be open to reopen the assessment based on the very same material with a view to take another view. 12. The facts of this case clearly indicate that Petitioner has furnished all the details and relevant documents to the AO at the time of original assessment. The notice of reasons to believe itself reveals information and material which was available with the AO. Despite relevant information being available with the AO, if the AO chooses not to deal with the same, it cannot be presumed that it is Petitioner, who has not made a complete and full disclosure. We have perused in detail the letter dated 7th April 2008 of the Chartered Accountants of the Petitioner providing exhaustive details accompanied by all relevant documents to the AO. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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