TaxTMI 
TaxTMI 
2025 (6) TMI 1985
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....ome for AY 2006-07 was filed on 30.10.2006. Against the said return of income, the assessment was completed by the ACIT, Central Circle-2, Kozhikode (hereinafter called "the AO") vide order dated 22.12.2008 passed u/s. 143(3) of the Income Tax Act, 1961 (the Act) at a total income of Rs. 32,87,670/-. While doing so, the AO made certain disallowances on account of disallowance of interest and disallowance on account of excess wastage and depreciation, etc. Subsequently, the AO sought to reopen the assessment by issuing notice u/s. 148 of the Act on 23.03.2013 after recording the following reasons u/s. 147 of the Act:- "Information has been received from investigation Wing Calicut that bank account No. 1331 in the name of M/S. M.P. T....
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....o be reopened after expiry of a period of 4 years from the relevant assessment year without allegation of failure of the assessee to produce material facts necessary for completion of assessment. However, the CIT(A) confirmed the action of the AO. 5. Being aggrieved, the appellant is in appeal before us in the present appeal. 6. The learned counsel for the assessee submitted that the assessment proceedings sought to be reopened is in valid in law as there is no allegation that the appellant had failed to disclose relevant material facts necessary for assessment purposes placing reliance on the following judgments: - i) Dull Chand Singhania v. ACIT 269 ITR 192 (P&H) ii) General Motors India Pvt. Ltd. v. DCIT 360 ITR 5....
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....aterial facts in his return as, first of all, there is no such allegation in the reasons as furnished to the assessee; secondly, we cannot ignore the fact that the enquiry into the share application money had been conducted in detail by the Assessing Officer in the first round of assessment. Having framed his assessment after enquiry into the identity, genuineness and the creditworthiness of the share applicants, it would not be open for the Assessing Officer to re-examine the same without there being any material allegation of failure, on the part of the assessee, to make a full and true disclosure. It is well-settled that in order to invoke the provisions of Section 147 of the Act, after a period of four years from the end of the relevant....
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....t, for that assessment year. In the present case, the question of making of a return is not in issue and the only question is with regard to the second portion of the proviso, which relates to failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment. Insofar as this pre-condition is concerned, there is not a whisper of it in the reasons recorded by the Assessing Officer. In fact, as indicated above, the Assessing Officer could not have made this a ground because the Assessing Officer had required the petitioner to furnish details with regard to loss occasioned by foreign exchange fluctuation which the petitioner did by virtue of the reply dated February 5, 2002. Since the petitioner had ful....