AI Drafter 
TaxTMI 
TaxTMI 
2017 (12) TMI 251
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....ax Act (hereinafter referred to as 'the Act'). Petitioner vide letter dated 1.5.2010 requested that the return of income as originally filed on 31.10.2005 may be treated as return filed in pursuance of the notice u/s 148 of the Act. The reasons were assigned by the respondent no.2 for reopening of the assessment vide Annexure No.4. Petitioner filed objections against the same on 12.10.2010. Objections were disposed of by the respondent no.3 vide order dated 7.12.2010. 3. Petitioner, being a non-resident company, filed the return of income at Rs. 30,626,953/- on 31.10.2005 u/s 44BB(1) of the Act by applying the deemed profit rate of 10% on the gross contractual revenues. On 28.12.2007, the assessment was completed u/s 143(3) of the Act at....
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....son of any mistake defect or omission in such return of income. 5. Thus, according to the reasons assigned, there was tangible material for formation of belief by the Assessing Officer to reopen the assessment. It is in these circumstances, the notice u/s 148 of the Act was issued to the petitioner company. The objections raised by the petitioner company to the reasons assigned for reopening of case have been discussed in length by the respondent no.1. The Assessing Officer is required to consider all possible angles of controversy. In the instant case, the tax has escaped assessment on account of failure of assessee to disclose true facts before the authority concerned. 6. Their Lordships of Hon. Supreme Court in (2010) 2 SCC 723 in ....
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.... he has the power to reassess. But reassessment has to be based on fulfilment of certain precondition and if the concept of "change of opinion" is removed, as contended on behalf of the Department, then, in the garb of reopening the assessment, review would take place. 77. One must treat the concept of "change of opinion" as an in-built test to check abuse of power by the assessing officer. Hence, after 1-4-1989, the assessing officer has power to reopen, provided there is "tangible material" to come to the conclusion that there is escapement of income from assessment. Reasons must have a live link with the formation of the belief. Our view gets support from the changes made to Section 147 of the Act, as quoted hereinabove. Under t....
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....ITR 394 (Delhi) in the matter of 'Consolidated Photo & Finvest Ltd. V. Asst. CIT (Delhi)' has held that the Proviso to Section 147 envisages action in the ordinary course within a period of four years from the end of the relevant assessment year. That limitation does not, however, apply to cases where income chargeable to tax has escaped assessment on account, inter alia, of the failure of the assessed to disclose fully and truly all material facts. The argument that production of the account books and other documentary evidence relevant for assessment must imply a full and true disclosure of all material facts must be rejected out of hand in the light of the provisions of Explanation (1). The Division Bench further held that the there may ....
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....ing officer proposes to examine in the course of re-assessment proceedings. The submission of Mr. Vohra that even when the order of assessment did not record any explicit opinion on the aspects now sought to be examined, it must be presumed that those aspects were present to the mind of the assessing officer and had been held in favor of the assessed is too far fetched a proposition to merit acceptance. There may indeed be a presumption that the assessment proceedings have been regularly conducted, but there can be no presumption that even when the order of assessment is Page 436 silent, all possible angles and aspects of a controversy had been examined and determined by the assessing officer. It is trite that a matter in issue can be valid....