TaxTMI 
TaxTMI 
2017 (3) TMI 1524
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Act") by which the Assessing Officer has sought to reopen the assessment for the Assessment Year 2009-10 alleging inter alia that the income chargeable to tax for the relevant Assessment Year has escaped the assessment within the meaning of Section 147 of the Act. [2.0] The facts leading to the present Special Civil Application in nutshell are as under; [2.1] The petitioner - assessee is engaged in the business of dealing in scrap of iron and steel, ferrous and non ferrous metal, PVC material and old scrap cables. The petitioner - assessee filed the return of income for the year under consideration on 30/09/2009 declaring the total income at Rs. 20,51,540/-. The case was selected for scrutiny and various details were called for by t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....by the Assessing Officer. However, this Court is not concerned with the same. Thereafter, on the basis of the genuineness of the creditors, doubted by the Assessing Officer while considering the scrutiny assessment for the Assessment Year 2012-13, the Assessing Officer has reopened the assessment for the Assessment Year 2009-10 doubting the genuineness of the foreign creditors by issuing notice under Section 148 of the Act. Thereafter, the petitioner - assessee requested to supply the copy of the reasons recorded for reopening. The Assessing Officer supplied the copy of the reasons recorded for reopening vide letter dated 23/02/2016 wherein it was stated that the petitioner's - assessee's case for the year under consideration has been reope....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... proceedings of A.Y. 2012-13 it has come to the notice that during the F.Y. 2008-09 the assessee has been made the purchased copper scrap from the following foreign entities on credit basis and the purchase amount has been shown as outstanding liability in his books of accounts. Sr. No Name of the foreign entity from whom the purchase is made Year of Purchase Total income of purchase 1 AL-RAHIM CLOSEOUT INC F.Y. 2008-09 Rs.12,76,500/- 2 AL-MAHASEEL TRADING CO L.L.C. F.Y. 2008-09 Rs.1,33,74,482/- Rs.1,46,50,982/- However, the assessee was not able to produce the details of the genuineness of the transactions called for during the proceedings for A.Y. 2012-13. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the Assessment Year 2009-10 is bad in law and against the proviso of Section 147 of the Act. It is submitted by Ms. Parikh, learned advocate appearing on behalf of the petitioner - assessee that the assessment for the Assessment Year 2009-10 is sought to be reopened beyond the period of four years from the relevant Assessment Year, and therefore, unless and until the condition precedent as per proviso to Section 147 of the Act are complied with i.e. unless and until it is found that there was any suppression of material fact and there was any non-disclosure on the part of the petitioner - assessee in not disclosing true and correct facts for the Assessment Year, the Assessing Officer is not justified in reopening the assessment. It is submi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the basis of the opinion given by Superior Officer, and therefore, there is no subjective satisfaction on the part of the Assessing Officer. Making the above submissions, it is requested to allow the present petition. [4.0] The present petition is vehemently opposed by Shri Nitin Mehta, learned advocate appearing on behalf of the revenue. It is submitted by Shri Nitin Mehta, learned advocate appearing on behalf of the revenue that while framing the assessment for the Assessment Year 2012-13 the Assessing Officer doubted the genuineness of the transactions /creditors whose dues were pending since long. It is submitted that though the petitioner - assessee was called upon to furnish the details with respect to such creditors whose dues....
X X X X Extracts X X X X
X X X X Extracts X X X X
....essment for the Assessment Year 2009-10 is sought to be reopened beyond the period of four years, and therefore, considering the proviso to Section 147 of the Act unless and until there is any failure on the part of the petitioner - assessee in not disclosing true and correct facts necessary for the purpose of assessment, the Assessing Officer is not justified in reopening the assessment. In the present case, it appears from the reasons recorded to reopen the assessment for the Assessment Year 2009-10 that on the basis of the scrutiny assessment for the Assessment Year 2012-13 in which the Assessing Officer doubted the genuineness of the creditors solely on the ground that the outstanding amount due and payable to such creditors was pending....