2019 (1) TMI 1416

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....ce of the case and in law, the Tribunal was justified in law in holding that the reopening of the assessment u/s. 147 of the Act, was unjustified and incorrect? 3. The Revenue's return of income for the subject Assessment Year 2004-05 was taken up for scrutiny by the Assessing Officer. This resulted in an assessment order dated 28th September, 2006 passed under Section 143(3) of the Act. 4. Thereafter, on 28th March, 2011, the Assessing Officer issued a notice under Section 148 of the Act, seeking to reopen the assessment for Assessment Year 2004-05. The reasons in support of the impugned notice, reads as under: "In this case, the assessment was completed u/s. 143(3) on 29.09.2006 assessing the total loss of Rs. 3,16,92,2301. ....

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....on to believe that the assessee had not made a full and true disclosure in the return of income. As such I have reason to believe that the income of Rs. 1,35,44,600/chargeable to tax under the provisions of the I.T.Act, 1961 had escaped assessment for AY 2004-05." 5. The Respondent challenges the validity of the above re-opening notice dated 28th March, 2011 before the Assessing Officer. However, the Respondent's challenge was negatived by the Assessing Officer and fresh order on re-assment under Section 143(3) read with Section 147 of the Act was passed on 28th October, 2011. 6. Being aggrieved, Respondent filed an appeal to the Commissioner of Income Tax (Appeals) [CIT(A)]. By an order dated 17th August, 2012, the CIT(A) allowed....

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....tice dated 28th March, 2011. 9. The above contention on behalf of the Revenue, ignores the fact that the reopening notice dated 28th March, 2011 was set aside by the CIT(A) and the Tribunal not on the basis of the same being based on change of opinion. The basis of the impugned order of the Tribunal is not on account of change of opinion but on account of no failure to disclose fully and truly all material facts necessary for assessment in regular assessment proceeding, leading to an order under Section 143(3) of the Act. This the Tribunal held bars the Revenue from issuing reopening notice under Section 143(3) of the Act beyond a period of four years from the end of the relevant Assessment Year in terms of the proviso to Section 147 of ....