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TMI Blog2012 (9) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... sible in law. It is an admitted fact that the assessee has fully and truly disclosed all material facts necessary for assessment at the time of filing of return and also during the course of assessment proceedings and the assessment was completed u/s 143(3). It is well settled law that re-assessment proceedings cannot be initiated merely by fresh application of mind of the Assessing Officer to same set of information which is nothing but change of opinion, which is not permissible under the law. There was no material or information which had come to possession of Assessing Officer after completion of the original assessment to justify the reopening - Decided in favor of assessee - ITA No. 337/Chd/2012 - - - Dated:- 27-6-2012 - SHRI H.L.K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 43(3) of the Act on 23.3.2001 at an income of Rs. 2,74,630/- against returned income of Rs. 2,32,620/- after disallowing certain expenses debited in profit and loss account. Subsequently, it was noticed by the Assessing Officer that the assessee had claimed remuneration to the partners against the income surrendered by the assessee firm at the time of survey operation u/s 133A(1) of the Act. During the sources of survey operation, the assessee was found to have in possession of excess stock to the tune of Rs. 4,50,000/- and excess cash in hand at Rs. 25,000/- for which the assessee could not give any satisfactory explanation and came forward with surrender of Rs. 4,50,000/- in stock and Rs. 25,000/- in cash. The Assessing Officer took the v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d have been straight away reflected in clear terms on the profit side in the profit and loss account. By booking it in the trading account, the assessee camouflaged it as a part of his trading profit and thus did not truly disclose the material facts necessary for its assessment, therefore, the issuance of notice u/s 147/148 even after expiry of four years from the end of the relevant assessment year is fully justified in this case. 6. Now the assessee is in appeal before the Tribunal against the order of CIT(A) dated 23.1.2012. 7. Shri V.K. Gulati, Advocate, appeared for the assessee and Shri Surinder Meena appeared for the Revenue. Shri V.K. Gulati, Ld. Counsel for the assessee vehemently argued that in view of proviso to section 147, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i, Ld. Counsel for the assessee further pointed out that the reopening of assessment is invalid so much so that firstly the assessee had already disclosed all material facts fully and truly at the time of framing of original assessment which in this case was framed u/s 143(3) of the Act on 23.3.2001 and secondly the Assessing Officer has erroneously issued notice under section 148 after expiry of four years from the end of relevant assessment year. As regards the opinion discussed by Assessing Officer in the body of assessment order and interpreting the law as well as facts that there are unexplained investments/assets and referring to Sections 69 69 A of the Act, Shri V.K. Gulati, Ld. Counsel for the assessee submitted that nothing has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnished profit and loss account, the balance sheet, computation of income along with return of income. Thereafter, the Assessing Officer framed the assessment u/s 143(3) of the Act. There was no material or information which had come to possession of Assessing Officer after completion of the original assessment to justify the reopening. In my opinion, reopening was based merely on fresh application of mind by Assessing Officer to same set of facts and, therefore, initiation of re-assessment proceeding is bad in law and assessment completed by Assessing Officer is liable to be cancelled being invalid. 10. The next contention of Shri V.K. Gulati, Ld. Counsel for the assessee is that there was no failure on the part of the assessee to disc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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