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Issues involved: Assessment proceedings u/s 147 of the Income Tax Act, 1961 beyond the period of limitation, failure to disclose material facts for assessment, invoking provisions of Section 148 for reassessment based on change of opinion.
Assessment proceedings u/s 147: The appeal was filed against the order of the Income Tax Appellate Tribunal regarding the assessment year 1998-99. The original assessment was made u/s 143(3) of the Act, and the period for reopening the assessment had expired. The Tribunal found that the proviso to Section 147 applied, stating that no action shall be taken after four years from the end of the relevant assessment year unless there was a failure to disclose fully and truly all material facts necessary for assessment. The Tribunal concluded that there was no such failure by the assessee. Failure to disclose material facts: The Tribunal examined whether the assessee had failed to disclose all material facts necessary for assessment in the original assessment u/s 143(3) of the Act. It was found that the assessee had provided full details regarding export earnings and incentives during the assessment proceedings. The Tribunal held that since all relevant documents were produced and details were submitted, there was no failure to disclose material facts. Invoking Section 148 for reassessment: The Court noted that the Assessing Officer initiated reassessment proceedings u/s 148 of the Act based on a change of opinion, citing judgements related to deductions under Section 80 HHC. The Court observed that there was no concealment or suppression by the assessee, and the reassessment was not warranted. It was deemed a case of change of opinion, which cannot be the basis for invoking Sections 147/148 of the Act. The appeal was dismissed as there was no substantive question of law arising for determination.
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