Reopening after expiry of four years invalid if there was no failure on the part of assessee

Garg Zevar Palace Pvt. Ltd Vs ITO (ITAT Delhi)

Section 147 mandates that the case can only be reopened after expiry of four years only if there was a failure on the part of the assessee to fully and truly disclose all material facts necessary. The assessee has disclosed the fact of receipt of Rs.60,00,000/- towards the share capital in the regular return filed which has been scrutinized u/s 143(3). In the reasons recorded for reopening, the Assessing Officer has not mentioned anything with regard to failure on the part of the assessee to disclose all the material facts. This matter has been examined by the Hon’ble Apex Court in the case of NDTV Ltd. Vs DCIT, by the Hon’ble Jurisdiction High Court in the case of BPTP Ltd. Vs PCIT, Haryana Acrylic Manufacturing Company Vs CIT. The Co­ordinate bench of Tribunal in the case of RMP Holdings Pvt. Ltd. relied on judgments of the Hon’ble Courts and held that the Assessing Officer has to specifically record reasons with regard to failure of the assessee to disclose fully and truly all material facts. In view of the above, we quash the reassessment proceedings initiated u/s 147/148.

FULL TEXT OF THE ORDER OF ITAT DELHI

The present appeal has been filed by the assessee against the order of the ld. CIT(A), Faridabad dated 31.10.2019.

2. Following grounds have been raised by the assessee:

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