2013 (11) TMI 1801 - AT - Income Tax

Summary

Issues involved: Validity of reopening assessment after expiry of four years u/s 147.

Summary:
The appeal was filed by the revenue against the order of the CIT(A), pertaining to the assessment year 2004-05. The ld.DR argued that the assessment proceedings were reopened after the expiry of four years, which the CIT(A) deemed invalid. The Kerala High Court judgment was cited to support the contention that the assessee's duty is to bring relevant details to the assessing officer's notice. However, the ld.representative for the assessee argued that all necessary details were provided during the original assessment proceedings, and the books of account were seized by the department. The Tribunal noted that the assessing officer had specifically requested details related to partners' capital account and current account, which were duly provided by the assessee. Therefore, the Tribunal concluded that there was no negligence on the part of the assessee in furnishing the required details for completing the assessment, and upheld the order of the CIT(A) dismissing the revenue's appeal.

The assessing officer had completed the assessment earlier u/s 143(3) and reopened it after four years, which was challenged by the revenue. The ld.DR argued that the assessee failed to bring relevant details to the assessing officer's notice, justifying the reopening. However, the Tribunal disagreed, noting that this was a search assessment where the books of account were seized by the department. The assessing officer had specifically requested details which were provided by the assessee. As there was no negligence on the part of the assessee in furnishing the required details, the Tribunal confirmed the order of the CIT(A) dismissing the revenue's appeal.