Pradeep Kumar Agrawal Vs ITO (ITAT Raipur)
ITAT Raipur held that reopening of proceedings under section 148 of the Income Tax Act beyond a period of 4 years without failure on the part of the assessee to disclose fully & truly all the material facts is liable to be annulled. Accordingly, appeal of the assessee allowed and reassessment quashed.
Facts- The assessee is engaged in trading business of paddy, rice, other bi-product and transport work. The case of assessee was selected for scrutiny assessment u/s 143(3), which was completed on 29.11.2016 determining the assessed income at Rs. 7,86,280/-.
Later based on certain credible information, the case of assessee was reopened u/s 147 with issuance of notice u/s 148 dated 30.03.2021. notably, assessee failed to furnish requisite information hence AO was left with no option but to complete the assessment on the basis of material available on record, in the manner prescribed under the provisions of section 144 of the Act. The assessment thereafter has been completed on 26.03.2021 with the enhancement of income of assessee by Rs. 45,05,905/- and the total assessed income has been computed at Rs. 52,92,181/-.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
