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| The Tax Publishers2021 TaxPub(DT) 0887 (Jp-Trib) : (2021) 085 ITR (Trib) 0661 INCOME TAX ACT, 1961
Section 147
Even though reopening of assessment was made after expiry of four years from the end of the relevant assessment, however, there was no original return of income filed by assessee and consequent assessment, hence, it was not necessary for AO to show that there was any failure to disclose fully or truly all material facts necessary for assessment in terms of proviso to section 147, however, AO had merely gone by the CIB Report and was not even in possession of sale deed and the exact specifics of transaction at the time of recording of reasons and, therefore, proceedings were vitiated for want of tangible material in possession of AO and lack of reason to believe which was more in the realm of suspicion, rather than formation of opinion that income had escaped assessment.
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Reassessment - Reopening based on CIB Report - No tangible material in possession of AO -
AO received information from CIB as to assessee having sold immovable property for a consideration of Rs. 7 lakhs which was valued at Rs. 7.17 lakhs for the purposes of charging stamp duty. Accordingly, AO reopened assessment after expiry of four years from the end of relevant assessment year. Assessee took plea of proviso to section 147.Held: Even though reopening was made after expiry of four years from the end of the relevant assessment, however, there was no original return of income filed by assessee and consequent assessment, hence it was not necessary for AO to show that there was any failure to disclose fully or truly all material facts necessary for assessment in terms of proviso to section 147, however, AO had merely gone by the CIB report and was not even in possession of sale deed and the exact specifics of transaction at the time of recording of reasons and, therefore, proceedings were vitiated for want of tangible material in possession of AO and lack of reason to believe which was more in the realm of suspicion, rather than formation of opinion that income had escaped assessment.
Followed:Balaji Health Care (P) Ltd. v. ITO (2019) 14 ITR (Trib) 570 (JP) : [ITA Nos. 566 and 567/JP/2018 vide Order dated 30-1-2019.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2008-09
IN THE ITAT, JAIPUR 'A' BENCH
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