Case Law Details
Krutika Developers P. Ltd. Vs ITO (ITAT Ahmedabad)
The interdiction in the proviso appended to section 147 puts an embargo in the exercise of power at the end of the AO in cases where scrutiny assessment has taken place and four years have expired from the end of relevant assessment year. In such cases, the assessment cannot be reopened unless it its demonstrated that income has escaped assessment on account of failure on the part of the assessee to disclose all material facts fully and truly in respect of his assessable income. A perusal of the reasons would indicate that no such circumstances have been pressed by the AO. He has re-appreciated trial balance-sheet which is also available to him when original assessment order was passed. Therefore, reassessment is not sustainable. It deserves to be quashed. Accordingly, we quash the re-assessment order.
FULL TEXT OF THE ITAT JUDGEMENT
Present two appeals are directed at the instance of the assessee against separate orders of the ld.CIT(A)-2, Ahmedabad of even dated i.e. 7.11.2016 passed on the respective appeals of the assessee. ITA No.3460/Ahd/2016 arose from the assessment proceedings undertaken under section 144 r.w.s 147 in the Asstt. Year 2009-10; whereas ITA No.3459/Ahd/2016 has arisen from penalty proceedings initiated by the AO under section 271(1)(c) of the Act in the Asstt.year 2009-10.
2. First we take quantum appeal. In ground no.1, the assessee has challenged reopening of the assessment by issuance of notice under section 148 of the Income Tax Act.
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