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TMI Blog2017 (1) TMI 1498X X X X Extracts X X X X X X X X Extracts X X X X ..... r concluded the assessment. Above facts show that the assessee has disclosed all material facts at relevant places during original assessment proceedings u/s 143(3) of the Act. The AO himself asked for specific questions and full details were supplied by the assessee. AO examined these documents and framed the assessment only after proper application of mind. There was no failure on the part of the assessee to fully and truly disclose all the material facts. Thus, reassessment is being sought by the AO on mere change of opinion and apparently on the basis of information received from the investigation wing but nevertheless, all the information was available before AO during original proceedings. - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Ltd. and 1,50,000 shares of the company have been allotted to Talent Infoway Ltd. Further as per note on activities of Mahasagar group forwarded by the Addl. DIT, Unit- 1, alognwith his letter, M/s Mahasagar Securities Pvt. Ltd and its group companies are declaring their profession as entry provider in their returns and are disclosing their income @0.15% of the total entries provided by them. This is done on the basis of the ITAT order dated 29.08.2008 in appeal No. ITA No. 4624/MUM/2005 for the A.Y.2002- 03 in the case of M/s Mahasagar Securities Pvt. Ltd. In view of the above evidences I have reason to believe that the 28,00,000/- received as share application money by the assessee company is the unaccounted money of the company an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase in share capital during original assessment proceedings and in reply, detailed information was duly supplied from time to time as per the queries raised. Therefore, whatever information was sought by AO in this regard was duly supplied and after due deliberations and application of mind, AO concluded the assessment. Nevertheless, there was no failure on the part of the assessee to disclose fully and truly all material facts necessary for the purpose of assessment. Our attention has been drawn towards various queries raised during original assessment proceedings and replies / documents submitted by the assessee in this regard. Reliance has been placed on various judicial pronouncements. Per Contra, the Ld. DR asserted that the assessee o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year". Hence, apart from prime condition of 'reasons to believe that income has escaped assessment', there was an additional requirement of 'failure to disclose fully and truly all material facts' as contained in first proviso to Section 147. A perusal of notice u/s 142(1) dated 17/06/2008 issued during original assessment proceedings reveals that the assessee was asked to provide the details o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on" is removed, as contended on behalf of the Department, then, in the garb of reopening the assessment, review would take place. One must treat the concept of "change of opinion" as an in-built test to check abuse of power by the Assessing Officer. Hence, after 1st April, 1989, the Assessing Officer has power to reopen, provided there is "tangible material" to come to the conclusion that there is escapement of income from assessment. Reasons must have a live link with the formation of the belief". Further, the Hon'ble apex Court in the case of CIT vs. Foramer France (2003) 264 ITR 566 (SC) has clearly laid down the principle that where there is no failure on the part of the assessee to disclose material facts neces ..... X X X X Extracts X X X X X X X X Extracts X X X X
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