2017 (9) TMI 46

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....ed against the respondent-assessee under Section 147 of the Income Tax Act, 1961 have been held to be illegal. The matter relates to the assessment year 2005-06. After the order of assessment was passed a notice under Section 148 of the Act was issued on 27.03.2012 for initiating proceedings for re-assessment under Section 147 of the Act. The limitation for initiating proceedings for re-assessment under Section 148 of the Act is 4 years from the end of the relevant assessment year and it is extendable to 6 years again from the end of the relevant assessment year. In this view of the matter ordinarily the re-assessment proceedings could have been initiated by 31st March 2010 and within the extended period of 6 years by 31st March 2012.....

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....ncome and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year) : Provided that where an assessment under sub-section (3) of section 143 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year b....

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....er-alia for the reason of non disclosure of true and full material facts necessary for assessment. Thus the authority competent to initiate re-assessment proceedings must record his satisfaction that the income of the assessee had escaped assessment by reason of non disclosure of full and true material facts necessary for assessment. We have gone through the order of the Tribunal as well as reasons recorded for forming the opinion that the income had escaped assessment as quoted in the order of the Tribunal. A perusal of the reasons to believe as supplied by the department reveals that though it has been contended that on the information received from the Investigation Wing, New Delhi, the income of the assessee had escaped assessm....