Case Law Details
Notice issued u/s 148 after four year for reopening of assessment/s 147 on the ground that, in earlier assessment allowing depreciation on goodwill and set off of unabsorbed depreciation was erroneous.
In terms of the proviso to Section 147of the said Act the jurisdiction to reopen assessments already completed under Section 143(3) of the said Act, after the period of four years from the end of the relevant assessment year can only be exercised on the cumulative satisfaction of two conditions precedent as under:
1. There must be a reasonable belief on the part of the officer that income has escaped assessment; and
2. That there must be a failure on the part of the petitioner to fully and truly disclose all material facts necessary for assessment.
From the facts of above case, do not indicate any failure on the part of the petitioner to disclose fully and truly all material facts necessary for assessment. Further neither the reasons recorded for reopening the assessment nor the order dated 4th November, 2011 indicate that respondent is relying upon any tangible material which was not disclosed by the Petitioner truly and fully at the time when the assessment order was passed. Therefore, the jurisdictional requirement to reopen the assessment after more than four years from the end of the relevant assessment i.e. Assessment Year 2004-05 is not satisfied.
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