Court upholds decision on jurisdiction of reopening notice under Section 147, dismissing appeal without costs.

The Court affirmed the decisions of the CIT(A) and Tribunal, holding that the reopening notice under Section 147 was without jurisdiction due to the absence of failure in disclosure by the assessee and being time-barred. The appeal challenging the Tribunal's order was dismissed without costs, as no substantial question of law arose. The Court did not address the issue of non-issuance of notice under Section 143(2) in light of the primary finding on the validity of the proceedings under Section 147.

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Issues:
1. Whether the proceedings under Section 147 were valid in the case due to failure to disclose facts by the assessee.
2. Whether the non-issuance of notice under Section 143(2) rendered the proceedings under Section 147 invalid.

Analysis:

Issue 1: Validity of Proceedings under Section 147
- The respondent, engaged in software business, filed a return declaring Nil income after set off of unabsorbed depreciation.
- A reopening notice was issued in 2013 for Assessment Year 2006-07, citing incorrect depreciation calculation leading to escaped tax.
- The Assessing Officer confirmed the reopening and taxed the income, but the CIT(A) found no failure in disclosure by the assessee.
- The CIT(A) held the reopening notice beyond the four-year limit from the original assessment, making it without jurisdiction.
- The Tribunal upheld the CIT(A)'s view, stating no failure in disclosure by the assessee and the notice being time-barred.
- The Tribunal and CIT(A) relied on the decision in Nirmal Bang Securities case, emphasizing the lack of failure in disclosure.
- The reopening notice was deemed without jurisdiction and hit by the first proviso to Section 147 of the Act.
- The Tribunal dismissed the Revenue's appeal, concluding no substantial question of law arose.

Issue 2: Non-issuance of Notice under Section 143(2)
- Given the resolution of Issue 1, the question regarding the non-issuance of notice under Section 143(2) was deemed academic.
- Consequently, this question was not entertained by the Court.

Conclusion:
- The appeal challenging the Tribunal's order was dismissed with no cost implications.
- The Court affirmed the decisions of the CIT(A) and Tribunal, emphasizing the lack of failure in disclosure by the assessee and the invalidity of the reopening notice under Section 147.

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