2016 (12) TMI 672

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....rn of income for Assessment Year 2009-10. The Regular Assessment under Section 143(3) of the Act was completed on 30th November, 2011. Thereafter, on 30th March, 2016, the impugned notice was issued, seeking to reopen the Assessment for Assessment Year 2009-10. 3 The reasons in support of the impugned notice dated 30th March, 2016 as communicated to the Petitioner on 25th April, 2016 reads as under: " An information vide letter bearing No.PDIT (Inv.)/AHD/CCM/ Dissemination/201516 dated 08/03/2016 has been received in this office from the office of Pr. Director of IncomeTax, (Inv.) Ahmedabad. Notification of client codes is done by brokers to change the client codes in sale and purchase orders of securities after the trades are conducted.....

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....ng to Rs. 23,33,415/has escaped assessment in this case for the A. Y. 2009-10 and therefore, in my opinion, this is a fit case for reopening of assessment u/s. 147 of the I. T. Act, 1961." 4 On 12th July, 2016, the Petitioner filed its objections to the reasons recorded in support of the impugned notice. The Petitioner objected to the reasons on the ground that there is no whisper in the reasons recorded of any failure to fully and truly disclose all material facts for assessment on its part. In fact, as the notice was issued beyond a period of four years from the end of the relevant Assessment Year, the impugned notice is hit by the first proviso to Section 147 of the Act. Further, it was submitted that there is no material in the posses....

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....zing it to form a reasonable relief that income chargeable to tax has escaped assessment. 7 Mr. Tiwari, learned Counsel appearing for the Petitioner submits that the impugned notice is without jurisdiction on account of the following: (a) The reasons do not allege any failure on the part of the Petitioner to truly and fully disclose all material facts. Therefore, as the reopening of assessment is beyond a period of four years from the end of the relevant Assessment Year in case of assessment completed under Section 143(3) of the Act, the notice is hit by the first proviso to Section 147 of the Act; (b) The Assessing Officer had acted on directions of the superior authority and did not apply his mind. This on the basis of the covering let....

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....om the Principal Director of Income Tax (Investigation), Ahmedabad), only states "reopening of cases for Financial Year 2008-09 is getting barred by limitation of time on 31st March, 2016 and therefore to give top priority to these cases for necessary action." This observation cannot lead to the conclusion that the Assessing Officer is acting on directions of his superior. All that the above observation means is that the Assessing Officer should expeditiously examine the facts, and if necessary, act before 31st March, 2016. It is not a direction to the Assessing Officer to issue a reopening notice. Therefore, we do not find merit in the above submissions. 10 So far as submission (c) on the part of the Petitioner is concerned, we are unable....