9911796707
TMI Blog2019 (6) TMI 1256X X X X Extracts X X X X X X X X Extracts X X X X ..... t has taken place and four years have expired from the end of relevant assessment year. In such cases, the assessment cannot be reopened unless it its demonstrated that income has escaped assessment on account of failure on the part of the assessee to disclose all material facts fully and truly in respect of his assessable income. A perusal of the reasons would indicate that no such circumstances have been pressed by the AO. He has re-appreciated trial balance-sheet which is also available to him when original assessment order was passed. Therefore, reassessment is not sustainable. It deserves to be quashed. Accordingly, we quash the re-assessment order. Levy of penalty u/s 271(1)(c) - HELD THAT:- Sub-clause (iii) of section 271(1)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 271(1)(c) of the Act in the Asstt.year 2009-10. 2. First we take quantum appeal. In ground no.1, the assessee has challenged reopening of the assessment by issuance of notice under section 148 of the Income Tax Act. 3. With the assistance of the ld.representatives we have gone through the record carefully. It emerges out from the record that the assessment order was passed under section 143(3) on 20.9.2011 assessing total income at Rs.NIL. The AO thereafter reopened the assessment by recording following reasons: Reasons for reopening of assessment The assessee company has filed return of income on 30.09.2009 declaring total income NIL . The assessee company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 21.11.2014 whereas four years for the Asstt.Year 2009-10 will expire on 31.3.2014. Since scrutiny assessment was also there in this case, and in that situation, proviso appended to section 147 would come to the rescue of the assessee. The interdiction in the proviso appended to section 147 puts an embargo in the exercise of power at the end of the AO in cases where scrutiny assessment has taken place and four years have expired from the end of relevant assessment year. In such cases, the assessment cannot be reopened unless it its demonstrated that income has escaped assessment on account of failure on the part of the assessee to disclose all material facts fully and truly in respect of his assessable income. A perusal of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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