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Sec. 147 of Income Tax Act, 1961 – Reassessment – Reopening of assessment invalid as assessment can be reopened only if there is any failure on the part of assessee to disclose fully and truly all material facts necessary for its assessment for the year under consideration.
Facts: Assessment of assessee was completed under section 143(3). Thereafter notice was issued under section 148, revenue seeks to reopen the assessment of the petitioner for assessment year 2011-12. In response to notice, assessee submitted its return of income and also requested for a copy of the reasons recorded for reopening the assessment. By a letter dated 22.05.2018 such reasons came to be furnished. Thereafter upon perusal of the reasons recorded by AO for reopening the assessment, assessee filed objections to the assumption of jurisdiction by the AO under section 147 read with section 148. By an order, such objections came to be rejected. Being aggrieved, assessee has filed the petition.
Held, that earlier an assessment had been framed under section 143(3) for assessment year 2011-12. The impugned notice under section 148 has been issued on 28.03.2018, which is clearly beyond a period of four years from the end of the relevant assessment year, and therefore, the first proviso to section 147 would be attracted, consequently, the assessment can be reopened only if there is any failure on the part of assessee to disclose fully and truly all material facts necessary for its assessment for the year under consideration. Evidently, therefore, the Assessing Officer seeks to reopen the assessment on a mere change of opinion and hence, even on this count the assumption of jurisdiction on the part of the Assessing Officer is bad in law – R. KANTILAL & CO. Vs. ITO [2020] 424 ITR 092 (GUJ)