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TMI Blog2022 (4) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... eopening of assessment u/s 147 in the present case, without any reference to failure on the part of the assessee to disclose all facts regarding the said loans in the return of income books of account and also during the assessment proceeding, is not justified and is in violation to proviso to section 147 - The case of the assessee finds support from the decision of New Delhi Television Ltd. [ 2020 (4) TMI 133 - SUPREME COURT] wherein it has been held that where the assessee has disclosed all material facts qua the issuance of convertible bonds, thus there was no failure on the part of the assessee to disclose material facts and therefore notice issued to the assessee u/s 147 of the Act after a period of 4 years has been quashed. Assessment was completed u/s 143(3) and thereafter the AO received the information from Investigation Wing that the assessee has received bogus loans in the form of accommodation entries and on that basis the case of the assessee was reopened. The assessment was reopened after a period of more than 4 years on the ground that sources of loan funds were not explained. Considering the facts of the present case before us in the light of the aforesaid decisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for scrutiny and the assessment u/s 143(3) was framed vide order dated 24.02.2014 assessing the total income at ₹ 33,24,220/-. During the course of assessment proceedings, the AO specifically raised a query by issuing the questionnaire dated 26.12.2013 calling upon the assessee vide para 3 of the said questionnaire to furnish the information/details qua the loans taken, and interest payable thereon in a prescribed proforma which was replied by the assessee by filing the details relating to these loans amounts ,the copies whereof are filed at page 37 to 40 of the PB and finally the assessment was framed u/s 143(3) accepting the contentions of the assessee qua the money raised. Thereafter the case of the assessee was reopened u/s 147 by issuing notice u/s 148 of the Act dated 29.03.2018 which was duly served on the assessee. The assessee filed its return of income on 14.04.2018. The case of the assessee was reopened on the ground that as per the information from DDIT(Inv), Unit-1(3), Kolkata, the assessee is beneficiary of various accommodation entries to the tune of ₹ 1,50,00,000/-. During the course of course of assessment proceedings u/s 147 r.w.s. of the Act, the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o disclose all material facts relating to its income materially and truly and not otherwise. In defense, the Ld. AR relied on the following series of decisions: "i. New Delhi Television Ltd. vs DCIT (116 taxmann.com 151) (SC) ii. CIT vs Multiplex Trading & Industries Company Ltd. (63 taxmann.com 170) (Delhi HC) iii. Hubtown Ltd. vs DCIT (74 taxmann.com 18) (Bom HC) iv. Dr. Rajivraj Ranbirsingh Choudhary vs ACIT (79 taxmann.com 152) (Guj HC)" 7. The Ld. AR of the assessee also drew our attention to the notice issued u/s 148 dated 29.03.2018 and the reasons recorded for reopening of assessment copies whereof are filed at page no. 56 to 58 and submitted that the reasons were in fact recorded approximately after 25 days from the date of issuance of notice u/s 148 of the Act. The ld AR argued that the notice u/s 148 of the Act was issued on 29.03.2018 whereas the reasons were recorded on 24.04.2018 which a serious defect in the issuance of the notice and goes to the root of the matter as the very assumption of jurisdiction by the AO is incorrect because reasons have to precede the issuance of notice. The ld Counsel of the assessee argued that on this count also proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.2014. We note that during the course of assessment proceeding, the issue of raising loans has been examined at length by the AO by specifically calling upon the assessee to provide/furnish the details of the loans and advances raised during the year which was duly complied with by the assessee by filing all the details/evidences and the AO, only after examining them, accepted the plea of the assessee as regards the loans raised and accordingly framed the assessment u/s 143(3) of the Act accepting all those transactions. Besides the assessee has made full disclosure of these transactions in the books of account which have been examined at length by the AO during the course of original assessment proceeding. Therefore, the reopening of assessment u/s 147 in the present case, without any reference to failure on the part of the assessee to disclose all facts regarding the said loans in the return of income books of account and also during the assessment proceeding, is not justified and is in violation to proviso to section 147 of the Act. The case of the assessee finds support from the decision of New Delhi Television Ltd. vs DCIT (supra) wherein it has been held that where the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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