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TMI Blog2018 (6) TMI 1767X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 147 that when the assessment is completed under section 143(3) then no action shall be taken under this section after expiry of 4 years from the end of the relevant assessment year until and unless income chargeable to tax has escaped assessment by the reason of failure on the part of the assessee to disclose all the material facts necessary for assessment. When the AO himself has not made any allegation against the assessee to disclose fully and truly all material facts necessary for the assessment then the reopening after 4 years is without jurisdiction of the AO as the existence of the jurisdictional condition precedent to exercise of power to reopen the assessment beyond the period of 4 years from the end of the relevant assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has submitted that the assessee has filed its return of income on 15.11.2007 declaring loss of ₹ 2,27,610/-. The assessment was framed under section 143(3) of the IT Act on 07.12.2009 at the returned income. He has referred to the assessment order passed under section 143(3) of the Act. The ld. A/R has then submitted that the AO proposed to reopen the assessment by issuing notice under section 148 on 25 th January, 2014 on the ground that the assessee has taken an accommodation entry of ₹ 30 lacs in the nature of loan/advance from M/s. Lexus Infotech Ltd and M/s. Vanguard Jewels Ltd. as per information received during the search and seizure action in the case of Praveen Jain Group, Mumbai. The ld. A/R has referred to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment wherein the ld. ACIT has duly recorded his satisfaction separately for granting the approval. 3. Having considered the rival submissions as well as the relevant material on record, we note that return of income filed by the assessee on 15.11.2007 was subjected to scrutiny assessment under section 143(3) vide assessment order dated 7 th December, 2009. The AO has reopened the assessment by issuing notice under section 148 on 25th March, 2014. Thus undisputedly the reopening of assessment in the case of the assessee is after four years from the end of the assessment year under consideration. The AO has recorded the reasons for reopening of the assessment as under :- The assessee filed its return of income for AY 2007-08 on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disclose fully and truly all the facts relevant for the assessment. Thus when the AO himself has not stated in the reasons recorded any failure on the part of the assessee to disclose fully and truly all the material facts then the reopening after 4 years from the end of the assessment year is not permitted as hit by the proviso to section 147 of the Act. The AO has reopened the assessment on the basis of the information received from Investigation Wing, Mumbai. Therefore, when the AO has not found any infirmity in the claim of the assessee of receiving share application money against allotment of shares to M/s. Lexus Infotech Ltd. and M/s. Vanguard Jewels Ltd. while completing the assessment under section 143(3) on 7th December, 2009 then ..... X X X X Extracts X X X X X X X X Extracts X X X X
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