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TMI Blog2015 (4) TMI 635X X X X Extracts X X X X X X X X Extracts X X X X ..... of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under subsection (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year: Provided further that nothing contained in the first proviso shall apply in a case where any income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment for any assessment year: Provided also that the Assessing Officer may assess or reassess such income, other than the income involving matters which are the subject matters of any appeal, reference or revision, which is chargeable to tax and has escaped assessment. The aforesaid provisions are clear and unambiguous. We find that by invoking the provision of Section 147 of the Act, the successor Assessing Officer has simply sat over the decision of the earlier Assessing Officer passed u/s.143(3) with respect to the issues sought to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en a completed scrutiny assessment u/s.143(3) on the basis of audit objection and mere change of opinion on the same set of evidence and record? 7. Learned counsel Mr. RK Patel appearing for the assessee took us through the order passed by the CIT(A) as also the impugned judgment rendered by the Appellate Tribunal. It was submitted that the Tribunal has erred in interpreting the scope and ambit of Section 143(3), 147 and 148 of the Act. The reassessment proceedings could not be said to be valid since it was based on audit objection and mere change of opinion on the same set of evidence on record, which was already processed at the time of original scrutiny assessment. It was, therefore, submitted that the present appeal deserves to be allowing by quashing and setting aside the impugned judgment and order of the Tribunal. 7.1 Learned counsel Mr. Patel placed reliance upon a decision rendered by the coordinate Bench of this Court in Special Civil Application No.8754 of 2014 and allied matters decided on 08.07.2014 and more particularly, on the observations made in Paras - 5 6 therein, which reads thus; 5. Shri Patel, learned advocate appearing on behalf of the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondence on which reliance is placed were latter in point of time after the order of the CIT(A) was passed. It was submitted that the assessee cannot get the benefit of the factual aspect which was not before the Tribunal in the appeal filed by the Revenue and which held in favour of the Revenue. It is submitted that, at the most, the matter may be remitted for reconsideration. He, therefore, submitted that the Tribunal has rightly allowed the appeal of the Revenue and hence, the present appeal deserves to be dismissed. 9. We have heared learned counsel for both the sides and perused the record of the case. While disposing of the appeal filed by the Revenue, the Tribunal observed in Para-4.4 as under; 4.4 The gist of reasons recorded were furnished by Assessing Officer to the assessee vide his letter dated 22.12.1995. The reasons for reopening were duly recorded by A.O. The original assessment was made on 26.03.1992. This was reopened within 4 years and fresh assessment u/s.143(3) r.w.s. 147 was made on 28.02.1995. The action under the main section 147 is possible in spite of the fact that complete disclosure of material facts was made as held by Hon ble Gujarat High Court i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r.w.s. 147 of the Act. 12. At this stage, it would be relevant to refer the provisions of Sections 143(1), 143(3) and 147 of the Act, which read thus; 143. Assessment : (1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:- (a) the total income or loss shall be computed after making the following adjustments, namely:- (i) any arithmetical error in the return; or (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; (b) the tax and interest, if any, shall be computed on the basis of the total income computed under clause (a); (c) the sum payable by, or the amount of refund due to, the assessee shall be determined after adjustment of the tax and interest, if any, computed under clause(b) by any tax deducted at source, any tax collected at source, any advance tax paid, any relief allowable under an agreement under section 90 or section 90A, or any relief allowable under section 91, any rebate allowable under Part A of Chapter VIII, any tax paid on self-assessment and any amount paid otherwis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... writing, make an assessment of the total income or loss of the assessee, and determine the sum payable by him or refund of any amount due to him on the basis of such assessment: 147. Income escaping assessment. If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year) : Provided that where an assessment under sub-section (3) of section 143 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of t ..... 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