TaxTMI 
TaxTMI 
2015 (10) TMI 993
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....The CIT(A) erred in law in stating that the assessee has disclosed all the material facts though as per explanation 1 to section 147 production before the AO of account books or other evidence from which material evidence could with due diligence have been discovered by the AO will not necessarily amount to disclosure." 2. Briefly the facts are, assessee is a company deriving income from investment and dealing in securities. Assessee filed the return of income on 30/10/2005 for the year under consideration declaring loss of Rs. 2,30,08,266/-, which was duly processed u/s 143(1) of the Act. Subsequently, assessee's case was selected for scrutiny and an order u/s 143(3) was passed on 20/12/2007 determining the income at NIL after setting o....
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....st long term capital loss and brought forward business loss. Being aggrieved of the assessment order, assessee preferred an appeal before the CIT(A). 3. As regards reopening of assessment, the assessee contended that reopening having been made merely on a change of opinion cannot be sustained. . It was contended that no new information was collected by the AO. Having examined the issue of set off of loss in course of the earlier proceedings u/.s 143(3), the AO could not reopen the case on reconsideration of very same facts and materials. 4. After considering the submissions of the assessee and referring to section 147 of the Act as well as analyzing and examining the issue in the light of various case laws, learned CIT(A) held that th....
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....refore, reopening of assessment is not only after expiry of four years from the end of the impugned assessment year but almost at the fag end of six years from the relevant assessment year. The AO is empowered u/s 147 of the Act to reopen an assessment if he has reason to believe that there is escapement of income or underassessment of income. However, proviso to section 147 mandates that in case of an assessment completed u/s 143(3) or section 147 of the Act reopening cannot be made after expiry of 4 years from the end of the relevant assessment year unless such escapement of income is attributable to failure on the part of the assessee to disclose fully and truly all material facts necessary for completion of his assessment. In the light ....
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...., condition precedent for reopening assessment beyond four years from the end of assessment year in the present case is not satisfied. Further, there is no dispute to the fact that assessee has furnished full details regarding the gain derived from sale of shares and sale of property and computation of loss in the computation of income and statements furnished along with the return of income. The AO after examining all these facts and materials brought on record has allowed set off of loss while completing assessment u/s 143(3) of the Act. As can be seen the AO on re appreciation of very same material considered in the original assessment is of the opinion that set off of loss from sale of shares is not allowable against long term capital g....