2022 (5) TMI 176

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....rship firm registered under the Indian Partnership Act, 1932 and is engaged in the business of construction.   3] The petitioner filed its original return of income in terms of section 139 of the Act for A.Y. 2014-2015 on 30.09.2014 declaring total income of Rs.3,69,780/-. 4] The petitioner's return was selected for scrutiny assessment. Notice under section 142(1) of the Act calling upon the petitioner to furnish return of income, computation of income etc. to complete assessment was issued and the same was complied with vide submission dated 02.06.2016. 5] It is stated that vide submission dated 13.12.2016 the petitioner pointed out to the Assessing Officer that they have completed the project under the name and style "Crystal Poin....

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....as thus reason to believe that the petitioner's income chargeable to tax for A.Y. 2014-15 has escaped assessment within the meaning of section 147 of the Act.   9] The petitioner on 13.11.2021 filed objections to reopening. Respondent No.2 rejected the objections by impugned order dated 28.01.2022. 10] We have heard Mr. Rahul Hakani, learned Counsel for the petitioner and Mr. Akhileshwar Sharma, the learned counsel for the respondents- Revenue. 11] Mr. Hakani submits that the existence of a valid reason to believe is a sine qua non for the exercise of jurisdiction under section 147 of the Act. It is submitted that the reasons for reopening assessment must be based on new information or material, however, in the present case, the Ass....

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....closing stock-in-trade. It is thus submitted that the reopening is based on tangible material and this is not a case of mere change of opinion. 14] We have perused the reasons recorded for reopening the assessment. For ease of reference, they are scanned and reproduced herein below.   15] In the present case, it is evident from the reasons recorded for reopening that the petitioner had truly and fully disclosed all material facts necessary for the purpose of assessment. In fact, in the reasons for reopening, there is not even a whisper as to what was not disclosed. The Assessing Officer has relied upon the records filed by petitioner including the profit and loss account and balancesheet and says from those records it is revealed tha....