2019 (5) TMI 1774

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....Appeals) [hereinafter referred to as 'CIT(A)'] erred in not holding that the order dated 22.03.2013 passed by the Assessing Officer u/s 143(3) r.w.s. 147 of the Income Tax Act, 1961 ('the Act') is beyond jurisdiction, bad in law and void-ab-initio. 1.1 That the reassessment proceedings after the expiry of four years from the end of the relevant assessment year, without appreciating that the same were barred by limitation in terms of proviso to section 147 considering that : (a) the original assessment for impugned year was completed under section 143(3) of the Act, and (b) there was no failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment. 1.2 That the i....

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....t of the assessee to disclose fully and truly all material facts. Thus, the limited question in this appeal before us is whether there was any failure on the part of the assessee to disclose fully and truly all material facts which has led to the escapement of income. The reasons recorded for reopening of assessment read as under :- "Reasons for reopening the case u/s 147 of the Income Tax Act, 1961 in the case of M/s NIS Sparta Ltd. - A.Y. 2005-06 Return of income in this case was filed on 30.10.2005 declaring income of Rs. 95,57,850/- and the same was revised on 18.07.2006 at a total income of Rs. 43,78,510/-. Assessment in this case was made u/s 143(3) of the IT Act on 28.03.2007 at an income of Rs. 43,78,510/-. The scr....

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....he purpose of claiming the deduction for provision of bad and doubtful debts, how can thereafter it be said that the assessee failed to disclose the fact of deduction being claimed for provision of bad debts. In the reasons recorded also, the Assessing Officer has not been able to point out how there is failure on the part of the assessee to disclose fully and truly all material facts. In view of the above, we hold that there was no failure on the part of the assessee to disclose fully and truly all material facts which has resulted in escapement of income and therefore, as per proviso to Section 147, the assessment cannot be reopened beyond the period of four years. The same is barred by limitation. 5. We may also mention that learned D....