2023 (8) TMI 439

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.... the part of the assessee to disclose fully and truly all material facts for completion of assessment for the relevant assessment year. For this, assessee has raised following ground No.3 & 4:- 3. The National Faceless Appeal Centre (NFAC) ought to have seen that reopening of assessment beyond 4 years without any additional tangible material to show that income has escaped assessment smacks of lack of jurisdiction. The Notice under section 148 was issued on 29.03.2019 which is beyond 4 years from the end of the assessment year Viz .31.03.2014. 4. The National Faceless Appeal Centre (NFAC) ought to have seen that the assessee has furnished full and true particulars of its income at the time of original assessment with reference to income alleged to have escaped assessment and it is settled position of law that the assessment cannot be validly reopened under Section 147 of the Act, within four year or beyond 4 years, merely on the basis of change of opinion. 3. Briefly stated facts are that the assessee is a resident domestic company and engaged in the business of real estate and aquaculture. The assessee filed its return of income for the relevant assessment year 2013-14 on 01.....

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....issue being a jurisdictional issue. 5. First of all, the ld.counsel for the assessee drew our attention to reasons recorded, which reads as under:- Reasons for reopening of the assessment in the case of M/s. Crown Real Estates Private Limited for the Asst. Year 2013-14 u/s. 147 of the Act. 1. Brief details of the Assessee: The assessee Company is engaged in the business of real estate. 2. Brief details of information collected/received by the AO: There had been share application money pending and not shares not allotted. There is an increase of Rs. 77,20,610/- when compared to the amount for AY 2012-13. The genuineness and creditworthiness of the persons who subscribed for shares are to be verified. In addition to this it is seen that authorized capital is Rs. 5 lakhs whereas the share application money pending is Rs. 4.42,72,411/- Thus there is a violation as far as share application money is concerned when compared to the authorized capital. 3. Analysis of information collected/received: The above analysis shows that the income exceeding Rs. 1 lakh has escaped assessment there by subjecting the assessee's case for reopening u/s. 148 for the AY 2013-14. 4. Enq....

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....1.73,301 21,63,301 Total 3,65,51,801 4,43,01,801 The ld.counsel submitted that these funds were initially received towards share application money and were subsequently converted into secured loans in financial year 2012-13 relevant to this assessment year 2013-14 but inadvertently it is shown as share application money in its financials. The ld.counsel stated that majority of share application money pertains to financial year 2011- 12 relevant to assessment year 2012-13 and in this year only share application money that is being differential share application money is to the extent of Rs. 77,50,000/-. The ld.counsel stated that from the above reasons recorded, it is clear that the AO has gone into the financials of the assessee which were available before the AO during the course of assessment proceedings and even the reassessment order also speaks that the information i.e., balance sheet as well as the complete accounts were available before the AO during the course of original assessment proceedings and there is no failure on the part of the assessee to disclose material facts fully and truly for the assessment of its income for the relevant assessment year. He stated that ....

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....heard learned counsel for the parties, we are of the view that these petitions deserve to be allowed. 15. It may be mentioned that a new Section substituted Section 147 of the Income-tax Act by the Direct Tax Laws (Amendment) Act, 1987, with effect from April 1, 1989. The relevant part of the new Section 147 is as follows : "147. 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 under this Section after the expiry of four years from the end of the relevant asse....