TMI Blog2022 (10) TMI 415X X X X Extracts X X X X X X X X Extracts X X X X ..... the department beyond the period of four years and when the assessee has disclosed fully and truly all material facts at the time of original assessment proceedings the proviso to section 147 does not warrant the A.O to further reopen such assessment when there is no new material or evidence in his possession to warrant such reopening of the proceedings. In view thereof, we have no reason to interfere with the findings of the ld. CIT(A) on facts as well as in law whereby the re-assessment proceedings has been held to be invalid and bad in law and we uphold the same. The appeal of the revenue is dismissed. - ITA No. 2121/PUN/2019 & C.O. No. 26/PUN/2022 - - - Dated:- 30-8-2022 - SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER Assessee by: Shri Nikhil Pathak Department by: Shri Arvind Desai ORDER PER PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER This appeal preferred by the Revenue and the Cross Objection by the assessee emanates from order of the ld. Commissioner of Income Tax (Appeals)-3, Pune, dated 24-10-2019 for the Assessment Year 2009-10 as per the following grounds of appeal. 1. On the facts and circ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee filed his return of income declaring total income of Rs. 66,69,954/- on 28-07-2009. The original assessment was completed u/s 143(3) of the Acton 31-10-2011 and the return of income of Rs. 66,69,954/- was accepted. The case was reopened for the assessment year 2009-10. The A.O issued notice u/s 148 on 28-03-2016 as according to him the income chargeable to tax had escaped assessment to the extent of Rs. 3,18,22,500/-, In response to this notice, assessee filed written submissions and prayed that the return of income filed for A.Y. 2009-10 may be treated as return in compliance. After considering the submissions of the assessee, the A.O held that transfer as per section 2(47) in relation to a capital assets include sale, exchange or relinquishment of the assets or extinguishment of the assets or extinguishment or any rights thereon or the compulsory acquisition thereof under any law and also that during the year under consideration, the assessee has transferred immovable properties with right for Rs. 3,31,00,000/-. Therefore, the amount of Rs. 3,31,00,000/- was added back to the total income of the assessee u/s 45 clause (1) of the Act. 4. Being aggrieved, the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tter dated 08-08-2011 the assessee furnished all the material facts relevant for the assessment and as per para 7 of the letter dated 11-08-2011 the details of income claimed as exempt were given along with separate detailed explanatory letter regarding amount of Rs. 3,31,00,000/- received from M/s. Bhumiraj Agro (I) Pvt. Ltd. Further, a copy of Indenture of Assignment, copy of Irrevocable Power of Attorney, copy of proceedings u/s 21 of the Maharashtra Agricultural Land (C on H) Act, 1961, copies of 7/12 extracts of land at village Wakrul, Dushmi, Kharpada and Jite Tal. Pen Dist. Raigad were also submitted in support of not treating the said receipt as taxable receipt or income. After considering all these facts and documents, the A.O in the original assessment order has accepted the returned income of the assessee. It is also further mentioned by the ld. CIT(A) at para 5.10 of his order that even the A.O while recording the reasons for reopening of case also acknowledged the letter dated 08-08-2019 and has accepted that the assessee disclosed the fact that the title of the land was disputed. The only objection of the A.O is that no material was produced by the assessee in support ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The proviso to section 147 is crystal clear that in the given circumstances when the assessee has disclosed fully and truly all material facts necessary for the assessment then no reopening of the said assessment can be done beyond the period of four years and if it has to be done then the A.O has to prove that the assessee has failed to disclose fully and truly all material facts, which in this case, the A.O has failed to do so. We find the Hon ble Bombay High Court in the case of Harsh Kaushal Corporation Vs. ITO in Writ Petition No. 1179 of 2022 dated 26-4-2022 for A.Y. 2014-15 has observed that in the present case, it is evident from the reasons recorded for reopening that the petitioner had truly and fully disclosed all material facts necessary for the purpose of assessment. In fact, in the reasons for reopening, there is not even an iota of whisper as to what was not disclosed. The A.O has relied upon the records filed by the petitioner including P L account and the balance-sheets and it is irrelevant that there is closing stock in trade of Rs. 33,49,8,003/-. Therefore, the respondent No. 1 is relying upon some primary facts which were before the A.O who completed the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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