2014 (2) TMI 610

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....sessment Year 2004-05. 3. We have heard ld. Representative of the parties and have perused order of the authorities below. 4. We observe that the original assessment was made u/s 143(3) of the Act on 03.11.2006. Subsequently, the Assessing Officer after recording the reasons on 16.03.2011, copy placed at page 6 of the paper book, issued notice u/s.148 of the Income Tax Act, on 28th March 2011. In the reasons recorded, we observe that the Assessing Officer has stated that on perusal of the assessment records, it is noticed that a). The Assessee Trust has credited the entrance fee Rs.2,54,37,000/-, directly to the reserves in the balance sheet without routing it through the income and expenditure account. b). As per schedule 12 of the Inc....

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....view that the above issue is covered in favour of the assessee by the decision of the Hon'ble Bombay High Court in the case of Hindustan Lever vs. Assistant Commissioner of Income Tax 268 ITR 232. Their lordships have held that Assessing Officer must disclose in the reasons as to which material facts were not disclosed by the assessee fully and truly, which was necessary for assessment of that assessment year to establish vital link between the reasons and evidence. Their lordships have held that said vital link is to safeguard against arbitrary reopening of the concluded assessment. It was also held that reasons recorded by the assessing officer cannot be supplemented by falling an affidavit or making an oral submission. 8. On perusal of ....

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....The notice u/s. 148 of the Act was issued on 28th March 2011 admittedly after the expiry of four years from the end of the relevant assessment year. At the time of hearing, it was contended by ld. DR that the original assessment was made u/s.143(1) of the Act and therefore, the action of the Assessing Officer to initiate reassessment proceedings by assessee notice u/s.148 of the Act is justified. However, ld. AR submitted that above issue is also covered by the decision of the Hon'ble Bombay High Court in the case of Prashan S. Joshi vs. ITO 230 CTR (Bom)232 and also Hon'ble Gujarat High Court in the case of Ratna Trayi Reality Service, Pvt. Limited vs. Income Tax 356 ITR 493. 12. On consideration of the facts of the case, it is a fact tha....