Reopening of assessment beyond four-year limit is barred where no failure to disclose material facts, so reassessment quashed.

Reopening assessments beyond the four-year statutory limitation is barred where the recorded reasons do not allege concealment or that the taxpayer failed to disclose material facts fully and truly; the proviso operating with the limitation period precludes reassessment initiated after that period absent such an allegation, and reliance on established precedent supports that principle. Applying this, the reassessment initiated beyond four years without an allegation of nondisclosure was quashed and the taxpayer's appeal allowed.

---

---

Issues: Whether the reassessment/reopening initiated under section 147/148 of the Income-tax Act, 1961 dated 24.03.2017 is valid when made beyond four years from the end of the relevant assessment year and without an allegation that the assessee failed to disclose material facts fully and truly.

Analysis: The reopening was initiated on 24.03.2017 and the assessment under section 143(3) read with section 148 was completed on 28.03.2018. The recorded reasons to believe do not allege that the assessee failed to disclose all material facts "fully" and "truly" in the earlier assessment. In the absence of an allegation of concealment or failure to disclose material facts, and having regard to the four-year time limit for reopening, the proviso to section 147 operates to bar the reassessment initiated beyond the prescribed period. Reliance is placed on the principle in Hindustan Lever Limited v. R.B. Wadkar that a reopening beyond the statutory period without the requisite factual foundation is unsustainable.

Conclusion: The reassessment/reopening under section 147/148 is quashed and the assessee's appeal is allowed. The decision is in favour of the assessee.

---