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| The Tax Publishers2019 TaxPub(DT) 0666 (Mum-Trib) : (2019) 174 ITD 0479 INCOME TAX ACT, 1961
Section 147
Where AO sought to reopen assessment after expiry of four years from end of relevant year on ground that assessee owned two house properties and, thus, one of said house property was to be treated as deemed let out and annual lettable value of said house property was to be determined as provided under section 23(1), since all relevant facts were brought on record at time of assessment, in view of proviso to section 147, reassessment proceedings deserved to be quashed.
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Reassessment - Income from house property - Annual value -
For relevant year, assessee filed his return declaring certain taxable income. Assessment was completed under section 143(3). After expiry of four years from end of relevant assessment year, AO sought to reopen assessment on ground that assessee owned two house properties and, thus, one of said house property was to be treated as deemed let-out and annual lettable value of said house property was to be determined as provided under section 23(1). Held: Admittedly, assessment was reopened after four years from the end of relevant assessment year. The first proviso gets triggered which casts onerous obligations on AO before invoking the provisions of section 147. As per the first proviso, no action could be taken under section 147 unless there was a failure on the part of assessee to disclose fully and truly all material facts necessary for assessment and reasons disclosed to assessee in fact indicates otherwise. Therefore, conditions prescribed in the first proviso were not complied with and notice under section 148 sought to re-open the completed assessment was clearly time barred.
Relied: Hasmukh I. Gandhi v. Dy. CIT [IT Appeal No. 5006 (Mum.) of 2014, dt. 16-11-2018]
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2008-09, 2012-13
INCOME TAX ACT, 1961
Section 23
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