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TMI Blog2023 (12) TMI 926X X X X Extracts X X X X X X X X Extracts X X X X ..... has expired from the end of the assessment year before reopening of assessment u/s. 147 r.w.s. 148 of the Act, we find no infirmity in the order of CIT(A) quashing the reopening. we are of the view that reopening is beyond 4 years and as the original assessment was framed u/s. 143(3) of the Act, the Revenue could not establish any failure on the part of the assessee to disclose any material facts necessary for its assessment, the reopening in present case is bad in law. Decided against revenue. - Shri Mahavir Singh, Vice President And Shri Manjunatha.G, Accountant Member For the Appellant : Shri AR.V. Sreenivasan, Addl.CIT For the Respondent : None ORDER PER MAHAVIR SINGH, VICE PRESIDENT: This appeal by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rief facts are that the assessee is engaged in the business of construction of residential buildings. The assessee for the relevant assessment year 2013-14 filed its return of income on 27.03.2015 and subsequently, assessee s case was selected for scrutiny assessment and assessment was completed u/s. 143(3) of the Act vide order dated 31.03.2016. Subsequently, assessment framed was reopened u/s. 147 of the Act by issuing notice u/s. 148 of the Act dated 04.09.2019. In response to this notice u/s. 148 of the Act, assessee filed its return of income on 19.09.2019. The AO recorded reason for issuing notice u/s. 148 of the Act that the assessee has not deducted TDS u/s. 194A of the Act on interest payment made by the assessee to the extent of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e any material facts necessary for completion of the original assessment. The AO has not stated any new material that came on record after the original assessment to reopen the assessment. I therefore feel that the re-opening of the assessment is hit by the 1st proviso to section 147 of the Act and the re-opening of the assessment for the AY 2013-14 is not valid. I therefore cancel the reassessment made u/s 147 in the appellant's case for the AY 2013-14 and allow the grounds raised by the appellant. Aggrieved, now Revenue is in appeal before the Tribunal. 5. We have heard rival contentions and gone through facts and circumstances of the case. We noted that admittedly, the relevant assessment year is 2013-14 and originally assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT, (2001) 247 ITR 436 by observing as under:- 14. Having heard learned counsel for the parties, we are of the view that these petitions deserve to be allowed. 15. It may be mentioned that a new Section substituted Section 147 of the Income-tax Act by the Direct Tax Laws (Amendment) Act, 1987, with effect from April 1, 1989. The relevant part of the new Section 147 is as follows : 147. If the Assessing Officer, has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if issued more than four years after the end of the relevant assessment year. The same view was taken by the Gujarat High Court in Shree Tharad Jain Yuvak Mandal v. ITO [2000] 242 ITR 612. 18. In our opinion, we have to see the law prevailing on the date of issue of the notice under Section 148, i.e., November 20, 1998. Admittedly, by that date, the new Section 147 has come into force and, hence, in our opinion, it is the new Section 147 which will apply to the facts of the present case. In the present case, there was admittedly no failure on the part of the assessee to make a return or to disclose fully and truly all material facts necessary for the assessment. Hence, the proviso to the new Section 147 squarely applies, and the impug ..... X X X X Extracts X X X X X X X X Extracts X X X X
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