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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 ..... ing Officer after completion of original assessment framed u/s 143(3). The re-assessment proceedings so initiated are bad in law and deserves to be cancelled. 2. That in the facts and circumstances of the case the Ld. CIT(A) has grossly erred in holding the action of the Ld. Assessing Officer of considering the stock surrendered before the survey party as an unexplained investment / asset u/s 69 / 69-A of the Act and restricting the remuneration paid to partners at Rs. 50000/- against claimed and already allowed as per original assessment framed u/s 143(3) of the Act at Rs . 243000/-, as justified. The addition so made on account of disallowance of salary to partners may directed to be allowed. 3. Vide ground No.1 of the appeal the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cope of chapter IVD of the Act. Accordingly, proceedings u/s 147 of the Act were initiated by the Assessing Officer and the claim of remuneration was restricted to Rs. 50,000/- only as against Rs. 2,43,000/- claimed and already allowed as per original assessment framed u/s 143(3) of the Act. 5. Aggrieved by the order of Assessing Of ficer, the assessee carried the matter in appeal before the CIT(A). The assessee vide ground Nos. 2 and 3 of the appeal, filed before the CIT(A) has challenged the validity of reopening of the as sessment u/s 147 of the Act. However, the CIT(A) decided the issue against the assessee stating that in the instant case, the assessee has credited the s urrendered amount of Rs. 4,50,000/- in the trading account and h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the course of assessment proceedings and the assessment was completed u/s 143(3) of the Act. According to Ld. Counsel for the assessee, re-as sessment proceedings cannot be initiated merely by fresh application of mind by Assessing Officer on same set of information which is nothing but change of opinion which is not permissible under the law. Shri V.K. Gulati, Ld. Counsel for the assessee also submitted that in the instant case, the assessee had not failed to disclose all material facts fully and truly. Therefore, the Assessing Officer has wrongly assumed that the computation of income was erroneous . Shri V.K. Gulati, Ld. Counsel for the assessee also submitted that in the instant case, computation of income submitted alongwith original ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Surinder Meena, Ld. DR heavily relied on the orders of the authorities below. 9. I have heard the rival submissions and have also perused the material available on record. At the very outset, I may observe here that in the instant case, the initiation of re-assessment proceedings was based on change of opinion of the Assessing Officer which is not permissible 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) of the Act on 23.3.2001. It is well settled law that re-assessment proceedings cannot be initiated merely by fresh application of mind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the reopening of the assessment u/s 147 / 148 of the Act beyond the period of four years at the end of the relevant assessment year can be sustained only if it is established that there is failure on the part of the assessee to disclose fully and truly all material facts. In this case, there is no finding that there is any failure on the part of the assessee to disclose fully and truly all material facts. In the instant case, it is an admitted fact that all the material facts were available at the time of making original assessment. Admittedly, in this case re-assessment proceedings were initiated beyond the period of four years form the end of relevant assessment year. Proviso to section 147 of the Act provides that no action can be tak ..... X X X X Extracts X X X X X X X X Extracts X X X X
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