Case Law Details
Audhut Timblo Vs ACIT (Bombay High Court- Goa Bench)
The issue under consideration is whether A.O. is correct in issuing Notice under section 147 for re-opening of assessment irrespective of the fact that the material on which he relied is already present in front of him at the time of assessment u/s 143(3)?
In the present case there was full disclosure and in fact, the amount had even become the subject matter of the assessment both under Section 158BC and Section 143(3) of the I.T. Act, there could have been no reason to believe that the income chargeable to tax had indeed escaped assessment.
In a situation where according to the assessing officer he failed to apply his mind to relevant material in making assessment order, he cannot take advantage of his own wrong and reopen assessment by taking recourse to provisions of section 147/148 of the I.T. Act.
In the present case, the assessing officer in the course of regular assessment had in fact asked for information in relation to this very amount of Rs. 10.33 Crores. This information was duly furnished by the petitioners. Only thereafter, the assessing officer made orders under section 143(3) of the I.T. Act. In these circumstances, it was no longer open for the respondents to issue the impugned notice under section 147/148 of the I.T. Act. Hence, HC quash and set aside the impugned notice.
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