TaxTMI 
TaxTMI 
2021 (1) TMI 600
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....t the final order u/s. 147/143(3) of the Act was passed on the basis of the reasons recorded on 20.05.14 by the DCIT, Circle-10, Kolkata for the assessment year 2009-10 i.e., after the four years from the date of expiry of the relevant assessment year. If that be so, according to him, the DCIT should have recorded reasons with a specific allegation of failure on the part of the assessee to disclose fully and truly all material facts necessary for that assessment year in terms of 1st Proviso of Section 147 of the Act. In this regard, he has relied upon the reasons so recorded reflected at page 56 of the paper-book filed before us by the assessee which does not speak of any failure on the part of the assessee in disclosing fully and truly all material facts necessary for the assessment year in question. Thus the reassessment proceeding is bad in law and liable to be quashed as argued by the Ld. AR. 4. He relied upon the judgment passed by the Hon'ble Bombay High Court in the case of Hindustan Lever Ltd. vs. R.B. Wadkar reported in (2004) 268 ITR 332 (2004) (Bombay) and judgment passed by the Hon'ble Gauhati High Court in the case of Assam Co. Ltd. vs. Union of India reported....
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....bogus transactions with certain companies, details of which was forwarded to this office. It is found, on perusal of the details forwarded, that the total accommodation entry in the form bogus purchase from the said parties amounted to Rs. 34,81,02,225/-. Therefore, I have reason to believe that the assessee-company's income chargeable to tax for the assessment year 2009-10 has escaped assessment to the tune of Rs. 34,81,02,225/- in addition to the escapement of Rs. 97.26 crores for which the assessment in question was reopened on 21/03/2014. Accordingly, this issue is merged with the original issue for consideration in the re-assessment proceedings u/s. 147 of the I.T. Act, 1961. It is reiterated once again that the reasons mentioned here is a part and parcel of reasons for reopening of the case of assessee for this year. A Copy of the reason is forwarded to the assessee for information and necessary action." 8. Thus, from the above reason recorded on 20.05.14, it appears that the issue which was raised therein has been marched with the earlier reason recorded on 21.03.14 for reopening of assessment and attained finality so far as the reasons recorded by the A.O. is concern....
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....ntention raised by the petitioner, wherein the petitioner has contended that the notice issued under Section 148 is without jurisdiction being hit by the proviso to Section 147 of the Act as such not within the prescribed period provided under the proviso to Section 147 of the Act. In the circumstances, it would be necessary to turn to Section 147 of the Act, which reads as under: "147. Income escaping assessment -- If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of Sections 148 to 153, assess or reassess such income 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....
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....ons not recorded. It is for the Assessing Officer to disclose and open his mind through reasons recorded by him. He has to speak through his reasons. It is for the Assessing Officer to reach the conclusion as to whether there was failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for the concerned assessment year. It is for the Assessing Officer to form his opinion. It is for him to put his opinion on record in black and white. The reasons recorded should be clear and unambiguous and should not suffer from any vagueness. The reasons recorded must disclose his mind. The reasons are the manifestation of the mind of the Assessing Officer. The reasons recorded should be self-explanatory and should not keep the assessee guessing for the reasons. Reasons provide the link between conclusion and evidence. The reasons recorded must be based on evidence. The Assessing Officer, in the event of challenge to the reasons, must be able to justify the same based on material available on record. He must disclose in the reasons as to which fact or material was not disclosed by the assessee fully and truly necessary for assessment of that a....