2026 (3) TMI 868

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....y Singh, ld. Sr. DR represented on behalf of the revenue. 3. It was submitted by the ld. AR that the assessee is a partnership firm. The assessee had paid salary to its partners by applying the provisions of Section 40(b)(v) of the Income Tax Act, 1961 (in short, the Act) read with Explanation-3. It was the submission that the original assessment came to be completed under Section 143(3) of the Act on 20/02/2015 accepting the returned income. It was the submission that the assessment was reopened by issuance of notice under Section 148 of the Act on 29/03/2018. It was the submission that the reasons recorded by the Assessing Officer does not mention that there is failure on the part of the assessee to disclose fully and truly all materia....

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....n done in the case of the assessee then there should be failure on the part of the assessee to disclose fully and truly all material facts required for assessment. As the Assessing Officer has not made any mention of such failure nor pointed out any such failure nor even made a whisper of such failure, we are of the view that the reopening of the assessment is hit by the proviso to Section 147 of the Act and is liable to be quashed and consequently, we quash the reopening. Consequent to the quashing of the notice issued under Section 148 of the Act, the consequential assessment also stands quashed. We may also mention here that the Income Tax Act does not require the registration of the partnership deed before any authority, the requirement....