Reopening under s.147/148 quashed where no new tangible material after search and original return filed considered

ITAT DELHI - AT held the reassessment reopening under s.147/148 invalid and quashed it. The tribunal found the assessee had filed an original return after a search and the AO had considered seized-material-linked questionnaires, unsecured loans and confirmations during assessment; the department produced no fresh tangible material to justify reopening. In absence of new material and given unrebutted averments on file, the reopening was held unjustified and the assessee's appeal was allowed.

---

---

Appeal against reopening under section 147 r.w.s. 143(3) for AY 2011-12 challenged validity of reopening as barred by the first proviso to section 147 because the Assessing Officer's reasons did not treat facts as an instance of the assessee having failed to disclose all relevant facts "fully" and "truly" in the return. Assessee filed original return on 25.12.2013 (income Rs.45,470) after a search (22.03.2012) and assessment under section 153A was framed on 14.03.2014; the file included a 72-page paper-book and AO's questionnaire dated 02.01.2014 based on seized material. AO during regular assessment considered unsecured loans and confirmations. Department failed to rebut that no "afresh tangible material" was discovered when initiating section 148/147 proceedings. Reliance on Ratnabhumi Developers v. ACIT: "such a reopening in absence of afresh tangible material does not deserve to be concurred with." Reopening quashed; other merits rendered academic; appeal allowed.

---