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TMI Blog2021 (11) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... round alone, it can be concluded that the notice is issued without jurisdiction. The tangible material to initiate assessment proceedings, as stated in the reasons for reopening, is an agreement dated 6th March 2014 post the period with which the impugned notice is concerned. When the reopening for the Assessment year 2011-2012 was challenged in this Court, this Court, on identical facts, in its order [ 2019 (1) TMI 1146 - BOMBAY HIGH COURT] while setting aside the notice issued under Section 148, held that an agreement post the period with which the impugned notice is concerned by itself could not form the basis for the Assessing Officer to have come to a reasonable belief that income chargeable to tax has escaped assessment for the subjec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 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 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. 4. The reasons recorded for reopening for Assessment Year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15, petitioner submitted an exhaustive response with 51 annexures. In the response, petitioner has provided details of advertisement and sales promotion expenses including documents and break up to respondents. Therefore, to allege that petitioner had failed to disclose all fully and truly material facts necessary for the assessment, not having submitted a bifurcated details of expenses, debited it to P L accounts for ₹ 3,38,59,00,000/- under the head advertisement and sales promotion expenses is incorrect. 8. To confer jurisdiction under Section 147 where assessment is sought to be reopened after four years from the end of the relevant assessment year, two conditions were required to be satisfied, firstly the Assessing Officer must h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Section 148, held that an agreement post the period with which the impugned notice is concerned by itself could not form the basis for the Assessing Officer to have come to a reasonable belief that income chargeable to tax has escaped assessment for the subject assessment year 2011-2012. Paragraph 12 of the said order reads as under : 12. Besides, we do note that the Assessing Officer is entitled to rely upon the order passed in assessment proceedings for the subsequent year, as tangible material to initiate reassessment proceedings. However, the tangible material so obtained must be processed i.e. its applicability to the assessee for the subject assessment year is to be examined so as to form a reasonable belief that income chargeable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f there has been no failure on the part of the petitioner assessee to disclose fully and truly all material facts necessary for assessment. In the present facts, we note that in its return of income the petitioner had claimed the expenditure incurred on Colour Idea Stores as a part of its Advertisement and Sales Promotion expenses. During the regular assessment proceedings under Section 143(3) of the Act, the Assessing Officer had occasion to examine the petitioner's claim for expenses in respect of Colour Idea Store as a part of its advertisement and sales promotion expenses. Thus, there was a complete disclosure of all primary material facts on the part of the petitioner. (See Calcutta Discount Co. Vs. ITO, 41 ITR 191 ). Therefore, no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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