TaxTMI 
TaxTMI 
TaxTMI 
2023 (10) TMI 406
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....led his return of income for Assessment Year 2006-07 on 26th October 2007 declaring total income of Rs. 2,84,19,724/-. The return of income was accompanied by all the necessary documents. The return of income was taken up for scrutiny by Respondent No. 1. The Assessing Officer ('AO') completed the assessment under Section 143(3) of the Act on 21st April 2008 determining the total income as Rs. 2,84,19,720/-. 3. Petitioner received notice dated 21st March 2013 under Section 148 of the Act for AY 2006-07 pursuant to which he filed the return of income accompanied by a letter dated 4th April 2013 requesting the AO to furnish the reasons on the basis of which the impugned notice was issued. By letter dated 10th September 2013, the AO served a ....
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....ar as per proviso section 147 of the I.T. Act. Hence, I have reason to believe that the income has escaped assessment. Notice u/s. 148 is being issued separately. Sd/- (PRASOON KABRA) Dy. Commissioner of Income-tax-7(3) Mumbai" 4. Petitioner filed objections dated 3rd October 2013 to the reasons recorded by the AO for reopening the assessment of income for the assessment year under consideration. However, vide order dated 8th January 2014, the AO rejected the objections raised by Petitioner and proceeded to issue notice under Section 142(1) of the Act on 10th January 2014. Petitioner replied to the said notice on 17th January 2014 once again reiterating that the 'reasons to believe' for reopening the assessment are not tenable on ....
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....h the AO. The said letter was accompanied by copies of the bank statements of Petitioner in respect of Vijaya Bank, Union Bank of India and H.D.F.C. Bank comprising of details of the saving as well as current accounts, the balance sheet as on 31st March 2006 and the loan confirmation of as many as 17 parties including the five companies in which Petitioner has share holding. The details in the letter and documents annexed thereto were in response to an oral request made by the AO. Hence, the AO was very much seized of all the relevant details of Petitioner at the time of the original assessment itself. For all these reasons, Mr. Jhaveri urges us to quash the impugned notice as the same is issued without application of mind and is wholly uns....
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....pecifically provides for its application only if the assessee fails to make a true and full disclosure of material facts at the time of assessment. Thus, the proviso to Section 147 of the Act will apply in this case and there is a bar in reopening of assessment unless there is a failure to truly and fully disclose material facts. The notice under Section 147 of the Act dated 21st March 2013 itself contains the details available with the AO as provided by Petitioner regarding his shareholding in the five companies. It is only because the AO failed to verify the applicability of provisions of Section 2(22)(e) of the Act that it was deemed necessary to reopen the assessment. This is the only reason recorded in the notice. 9. This Court in its....
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....ll and truly all material facts termed as primary facts and non-disclosure of other facts which may be termed as secondary facts is not necessary." 10. The Apex Court in its decision in the matter of New Delhi Television Ltd. v. Deputy Commissioner of Income Tax 2020 SCC OnLine SC 446., has held that it is the duty of the assessee to disclose full and truly all material facts termed as 'primary facts' and non-disclosure of other facts which may be termed as 'secondary facts' is not necessary. 11. This Court in the matter of Ananta Landmark Pvt. Ltd. v. Deputy Commissioner of Income Tax & Ors (2021) 131 taxmann.com 52 Bombay., has also held as under: "....that when the primary facts necessary for assessment are fully and truly disclosed....
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....mply discards the same by stating that even if there is no fresh material, but the information placed on record is such that it is difficult to be detected. The rejection order further cites a number of precedents of various Courts which are wholly inapplicable to the facts of the present case, being on a justification as to how the facts in the present case do not suggest a 'change of opinion' The reasons for rejection of the objections raised by petitioner are without any substance and hence untenable. 13. In view of the foregoing, we are firmly of the view that there is no failure on the part of Petitioner in making full and true disclosure to the AO during the original assessment leading to a possibility of application of the provision....