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TMI Blog2023 (12) TMI 926X X X X Extracts X X X X X X X X Extracts X X X X ..... r 2013-14 u/s. 143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter the 'Act'), vide order dated 27.09.2021. 2. The only issue in this appeal of Revenue is as regards to the order of CIT(A) quashing the reopening of assessment, reopened u/s. 148 of the Act, by the AO. For this, Revenue has raised following ground Nos.2 & 2.1:- 2. The Ld. CIT(A) erred in law in holding that re-opening u/s. 148 is not valid without appreciating that there is escapement of income from assessment, within the meaning of the provisions of Explanation 2(c)(i) to section 147 of the IT Act, since in the assessment order framed, income chargeable to tax has been under assessed, and the same shall amount to escapement of income. 2.1 The learned CIT(A) erred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he submissions of the assessee quashed the reopening by holding that the completed assessment was reopened after expiry of four years and there is nothing coming out of the reason that there is a failure on the part of the assessee to disclose any material fact necessary for completion of its assessment for the relevant assessment year. Hence, assessment reopened u/s. 147 r.w.s. 148 of the Act is bad in law and accordingly, quashed the reassessment by observing in para 7.1.3 as under:- 7.1.3 I have considered the submissions of the appellant and the reasons given by the AO. It is an admitted fact that an assessment u/s 143(3) was originally completed for the AY 2013-14. This completed assessment was re-opened by issue of notice u/s 148 on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly falls under the proviso to section 147 of the Act. It is also seen that the reopening is done only on the basis that the assessee has not deducted TDS on interest payment made to Reliance Home Finance Pvt. Ltd., amounting to Rs.1,43,15,144/-. The assessee has declared this interest payment and claimed in the return of income as deduction, which was allowed by the AO while framing assessment u/s. 143(3) of the Act. We noted that as the AO has not recorded in its reasons for reopening of assessment that there is any failure on the part of the assessee to disclose any material fact necessary for completion of assessment in the relevant assessment year, despite the fact that original assessment was completed u/s. 143(3) of the Act and time p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e an assessment under Sub-section (3) of Section 143 or this Section has been made for the relevant assessment year, no action shall be taken under this Section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under Section 139 or in response to a notice issued under Sub-section (1) of Section 142 or Section 148 or to disclose fully and truly all material facts necessary for his assessment for that assessment year." 16. This new Section has made a radical departure from the original Section 147 inasmuch as clauses (a) and (b) of the original Section 147 have b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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