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Issues involved:
The judgment deals with the annulment of assessment completed u/s. 147 r.w.s. 143(3) of the Income Tax Act, 1961 for Assessment Years 2002-03 and 2003-04. Assessment Year 2002-03: The Assessing Officer framed the assessment u/s. 143(3) originally, considering the facts and circumstances, including the issue of applicability of explanation to section 73 of the Act. The assessee disclosed all material facts necessary for assessment, including details of share trading business and purchases of shares. The assessee valued closing stock of shares at lower of cost or market value due to market value fall, resulting in a loss. The proviso to section 147 states that if the original assessment is u/s. 143(3), it cannot be reopened after four years unless there is a failure to disclose all material facts. As there was no such failure, the CIT(A) rightly held the reopening as void. The Tribunal upheld this decision, dismissing the revenue's appeals for both assessment years. Separate Judgment by CIT(A): The CIT(A) quashed the reassessment notice beyond the four-year time limit, as the assessee had disclosed all material facts during the original assessment. The reasons supplied did not indicate any failure on the assessee's part to disclose necessary facts. The CIT(A) held that the reassessment suffered from a change of opinion without fresh material. Referring to a decision of the Delhi High Court, it was concluded that the assessment could not be reopened beyond four years if full disclosure was made. Consequently, the order of assessment under section 147/143(3) was annulled.
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