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TMI Blog2016 (7) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 147 could be taken.” In view of above, we are inclined to hold that AO did not assume valid jurisdiction for initiation of proceedings u/s 147 beyond 4 years. Hence, we quash the same - Decided in favour of assessee. - ITA No.1330/Kol /2013, ITA No.2699/Kol /2013 - - - Dated:- 22-6-2016 - Shri Waseem Ahmed, Accountant Member And Shri S.S.Viswanethra Ravi, Judicial Member For the Assessee : Shri S.M.Surana, Advocate For the Respondent : Revenue Shri S.M.Das, JCIT-DR ORDER Per Waseem Ahmed, Accountant Member These cross-appeals by the assessee and Revenue are against the order of Commissioner of Income Tax (Appeals)-XXX, Kolkata dated 20.11.2012. Assessment was framed by ITO Ward-45(2), Kolkata u/s 143(3)(ii) r.w.s 147 of the Income Tax Act, 1961 (hereinafter referred to as the Act ) vide her orders dated 30.12.2010 for assessment year 2003-04. 2. Both the appeal are heard together and are being disposed of by way of consolidate order for the sake of convenience. First we take up assessee s appeal. The grounds raised by the assessee per its appeal are as under:- Assessee s appeal in ITA No.1330/Kol/2013 1. For that the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ental Representative appeared on behalf of Revenue. 2. The first issue in ground No. 1 to 5 raised by assessee in this appeal against the validity of reopening proceedings u/s 147 of the Act. Facts in brief are that assessee is a Partnership firm and engaged in the commission business. The original assessment was completed u/s 143(3) of the Act on 31.03.2006. During the course of original assessment a query with reference to the commission paid to M/s Umang Credit Capital Ltd. was raised but no reply was received till the completion of assessment under section 143(3) of the Act. However the reply was received by the AO, Circle-3 from M/s Umang Credit Capital Limited on dated 16.10.2008 which categorically denied for having any transaction with the assessee. Accordingly the proceedings under section 147 were initiated by issuing a notice under section 148 of the Act on dated 1.4.2009. The assessee has challenged the validity of proceedings initiated under section 147 of the Act on the ground that the initiation of proceedings are beyond 4 years from the assessment year 2003-04. Ld AR further contended that reopening of the case under section 147 of the Act can be done beyond 4 ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s Damani Co. 74 Kiran Shankar Roy Road, Kolkata-1, Sub: Proceedings u/s. 147-A.Y. 2003-04-Matter regarding Ref; Your letter no. nil dated 23.08.2010 Please refer to the above. As required, the Reasons to believe that income has escaped assessment for the A.Y. 2003-04 is as under:- During the course of scrutiny proceeding U/s. 143(3) for the Asst. Year P22003-04, information was called for from ACIT/DCIT,Circle-3, Kolkata in the matter of payments of sub-commission to M/s Umang Credit Capital limited. Since no information was received before the case gets time barred, assessment was completed on 31-03-2006, without taking any action. Information received on 16-10-2008, during the course of scrutiny proceeding U/s 143(3) for the Asst. Year 2004-05. It appears from the copy of the Trading, Profit Loss Account of M/s Umang Credit Capital Limited for the Asst. Year 2003-04 that, although the assessee claimed to have paid commission of ₹ 1,04,84,824.50 to them during Asst. Year 2003-04, no such receipts of commission shown by M/s Umang Credit Capital Limited in their respective return of income. On the other hand, M/s Umang Credit Capita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... failed to disclose truly and fully al material necessary for assessment and it would not be a case of mere change of opinion. Similarly the facts of the case Sword Global India (P) ltd. (supra) are different with the case of the assessee. In this case also the issue was not based whether it is mandatory to mention in the reasons to believe that the assessee has failed to disclose all the material facts fully and truly necessary for the assessment in the case of reassessment beyond 4 years. The facts of the case Sword Global India (P) ltd. (supra) are reproduced below : Section 147, read with section 10B of the Income-tax Act, 1961 Income escaping assessment Non-disclosure of primary facts (Change of opinion) Assessment year 2007-08 Whether under section 147 cases having willfully made false or untrue statements at the time of original assessment and when that falsity comes to notice, it is not fair on the part of the petitioner to turn around and say you accepted my lie, now your hands are tied and you can do nothing - Held, yes [Para 23] [In favour of revenue] Section 151, read with section 148, of the Income-tax Act, 1961 Income escaping assessment Sanction ..... X X X X Extracts X X X X X X X X Extracts X X X X
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