TaxTMI 
TaxTMI 
2025 (3) TMI 1916
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....2. The assessee in ground No. 2 has challenged validity of the assessment framed us/ 147 r.w.s. 143(3) of the Act on account of barred by limitation. 3. At the outset, the ld. Counsel for the assessee submitted that the proceedings in the instant case has been initiated u/s 147 of the Act beyond 4 years but without recording the facts that there was violation on the part of the assessee to disclose all material facts truly. As per the ld. AR there was a assessment u/s 143(3) of Act dated 26/12/2017 and, therefore, the AO before initiating the proceedings u/s 147 of the Act has to satisfy himself that there was failure on the part of the assessee to disclosed all materials facts truly. In the absence of such recording, the initiation of p....
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....own case Supra wherein it was held as under:- "19. We have carefully considered the rival contentions and perused the orders of ld. lower authorities. The facts clearly show that a notice u/s. 148 was issued for AY 2013-14 on 26.8.2021 and reasons were recorded on the same date which are as under:- "2. Brief details of information collected / received by the AO: The ITO, International Taxation, ward-1(1), Bangalore has forwarded the information vide letter in F.No. AAFCA2502B/ITO W-1(1)/Intl. Taxn./2019-20 dated 20.03.2020 as per which the assessee company has outsourced certain services to global service providers being non - resident entities. The assessee has made payments under the head AMC & Maintenance charg....
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....formation received from International Taxation officer and correlation of the same with records of M/s Eurofins Advinus Ltd. (Formerly known as Advinus Therapeutics Ltd), for A.Y.-2013-14, the undersigned has reason to believe that an amount of Rs. 49,17,872/- paid to non-resident service providers/vendors on account of AMC & Maintenance charges without making TDS is wilful of act of the assessee in order to reduce its taxable income. In light of the same undersigned has reason to believe that an amount to tune of Rs. 49,17,872/- has escaped assessment within meaning of section 147 of Income-tax Act." 20. According to the provisions of section 147 of the Act, if the AO has reason to believe that income chargeable to tax has escaped....
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..... Thus, if notice u/s. 148 is to be issued after expiry of four years, the assessee should have failed to disclose material facts and the ld. AO should have alleged and based his reasons to believe on that fact of non-disclosure by the assessee. If the AO does not state or allege that there was a failure on the part of the assessee to disclose fully and truly all material facts necessary for the said assessment year, any other authority cannot infer or improve up on such reasons so recorded, therefore absence of such necessary jurisdictional facts mentioned in reasons, such reopening of the assessment cannot be upheld. The Hon'ble Karnataka High Court in the case of CIT v. Canara Bank, 155 taxmann.com 289 has categorically held so in para 1....
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....he matter settled in VSV 2020 is the same as involved in the reopening. The judicial precedents cited before us are in fact related to section 263 of the income tax act, but those decisions have quashed the revisionary proceedings only for the reasons not the matter settled in that scheme and the matter for which the revisionary proceedings are initiated are same. Therefore, we dismiss this argument of the learned authorised representative. 25. Accordingly, ground no. 2 relating to reopening of the assessment is allowed as indicated above. 26. In view of our decision on ground no.2, all other grounds of appeal become infructuous and hence dismissed. \ 27. In the result, the appeal for AY 2013-14 is partly allowed.....