2022 (8) TMI 187

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....) under Section 143(3) r.w. Section 147 of the Income Tax Act, 1961 (the Act) concerning AY 2010-11. 2. The grounds of appeal raised by the assessee reads as under: "1. Because the Ld. CIT(A) has erred on facts and law in confirming the initiation of reassessment proceedings u/s. 147/148 of the Act beyond four years with respect to already concluded assessment u/s. 143(3] of the Act which is time-barred, illegal, against the authority of law and without jurisdiction and hence the entire reassessment proceedings were liable to be quashed. 2. Because the Ld. CIT(A) has erred on facts and law in confirming the assessment order making an addition on a fresh ground while the additions based on reasons recorded were grossly i....

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....the action of the lower authorities. 5. We have carefully considered the rival submissions. The assessee is a Charitable Educational Trust. The original assessment was completed under Section 143(3) of the Act on 23.12.2011. Thereafter, a notice dated 30.03.2016 was issued under Section 148 of the Act seeking to reopen the completed assessment. The reassessment proceedings were thus taken up after four years vide reasons dated 30.03.2016 to examine the issues namely; (a) allowability of accumulated surplus of Rs. 2 crore vide Form 10 filed on 16.12.2011 in original assessment proceedings, (b) allowability of depreciation already allowed as application as per Income & Expenditure A/c and (c) cash deposits in IDBI Bank already examined as ....

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....refore, I have reason to believe that the income of Rs. 2,58,54,066/- has escaped assessment within the meaning of section 147 of the Income Tax Act, 1961 and is chargeable to tax for the assessment year 2009-10. Dated: 30.03.2016 Deputy Commissioner of Income Tax Exemption, Circle, Ghaziabad" 7. As contended on behalf of the assessee, the reopening in the instant case is time barred having regard to the embargo placed by 1st proviso to Section 147 of the Act. On bare reading of the reasons recorded, it is seen that the Assessing Officer has not even cared to allege any failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment which is the condition precedent to....

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....CIT vs. Light Cart P. Ltd., (2018) 404 ITR 574 (Alld) has observed that in the absence of any allegation in the 'reasons to believe' recorded under Section 148(2) of the Act that the assessee has failed to disclose fully and truly all material facts necessary for assessment which is one of the mandatory conditions for initiating proceedings under Section 147 of the Act, it cannot be said that the Department was justified in initiating the re-assessment proceedings. The reasons recorded must speak for itself. The mandatory jurisdictional requirement in terms of 1st proviso to Section 147 will not be deemed to have been fulfilled if the reasons did not themselves clearly indicate that there was, in fact, a failure by the assessee to m....