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2014 (10) TMI 1061 - BOMBAY HIGH COURTReopening of assessment u/s 147 - notice beyond four years from the end of the relevant assessment year - jurisdiction to the AO to issue reopening notice viz. failure on the part of the petitioner to truly and fully disclose all material facts necessary for assessment - HELD THAT:- We are unable to understand/accept the submission made on behalf of the Revenue that Schedule 21 Notes to Annual Accounts were written in small print and hidden away in the Balancesheet resulting in the AO omitting to notice during the regular assessment proceedings. The reasons in support of the impugned notice which have been issued long after the completion of the regular assessment proceedings on 21 March 2002 rely upon the same Notes to Annual Accounts to issue impugned notice for reopening of the assessment. The submission of the Revenue based on Explanation 1 to Section 147 that the Notes to Annual Accounts could only have been discovered by the AO with due diligence and therefore would not amount to a disclosure within the meaning of the first proviso to Section 147 is not acceptable. This for the reasons Explanation 1 to Section 147 of the Act does not refer to the Balancesheet and Profit & Loss Account which is necessarily to be submitted alongwith the return of income, otherwise the return of income is itself regarded as defective u/s 139 of the Act. Thus Explanation 1 to Section 147 of the Act would have no application to the present facts. While allowing the petition on the above grounds, we must make it clear that we do not accept the submissions of the petitioner that the reasons in support of the impugned notice is devoid of particulars and therefore bad in law. The reasons do indicate why according to the AO there has been escapement of income. The impugned notice as well as the order rejecting the petitioner's objection to the impugned notice are quashed and set aside.
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