2026 (4) TMI 564

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.... the very validity of reassessment proceedings, has remanded the matter back to the file of the Assessing Officer. The controversy before us, therefore, lies not merely in the realm of quantum addition, but fundamentally concerns the legality of assumption of jurisdiction under section 147 in a second round of reassessment proceedings on identical set of facts which had already been examined and adjudicated in earlier proceedings. 2. The brief facts are that the assessee had filed its original return of income on 30.09.2012 declaring total income of Rs. 15,85,249/-. The case was initially reopened under section 147 based on information received from the Investigation Wing, Mumbai, alleging that the assessee had obtained accommodation ent....

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.... Based on Investigation Wing Report 3 First reassessment order u/s 143(3) r.w.s. 147 23.03.2016 Addition @ 9% 4 Order of CIT(A) 22.12.2017 Sustained @ 8% 5 Order of ITAT 30.09.2020 GP rate directed 6 Order Giving Effect 20.09.2021 Addition @ 1.75% 7 Approval u/s 151 (Second reopening) 22.03.2019 Same material 8 Notice u/s 148 28.03.2019 Second reopening based on some investigation report 9 Second reassessment order 18.12.2019 Addition @ 100% 6. The learned counsel for the assessee submitted that the second reopening is wholly without jurisdiction as it is based on identical material and therefore constitutes a clear case of change of opinion. It was furth....

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....ght concerns, and even the quantum of alleged purchases remains the identical figure of Rs. 8,24,01,689/-. Thus, there is not even a whisper of any fresh tangible material having come into possession of the Assessing Officer subsequent to the completion of the first reassessment. 10. What, however, has undergone a change is the opinion of the Assessing Officer. In the first round, the Assessing Officer, upon consideration of the very same material, took a conscious view that only the profit element embedded in such purchases is liable to be taxed, which view thereafter travelled through the appellate hierarchy and ultimately culminated in a direction of the Tribunal, followed by an order giving effect passed by the Assessing Officer hims....

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....ct. The attempt of the Assessing Officer to once again reopen the same issue is thus in direct contravention of the statutory mandate. 13. Equally untenable is the allegation of failure on the part of the assessee to disclose fully and truly all material facts. When the entire basis of reopening is the very same material which was available, examined and acted upon in the first round of reassessment, it is inconceivable as to how such material can now be characterised as having been not disclosed. The condition precedent stipulated in the first proviso to section 147 thus remains unfulfilled. 14. What is even more disconcerting is the manner in which the Assessing Officer has proceeded to record reasons in the second round, fully cons....