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TMI Blog2024 (9) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment order dated 01.09.2024 was passed u/s 143 (3) of the Act. In view of the above undisputed facts on both counts of change of opinion as well as the impugned notice being issued beyond four years from the end of the relevant assessment year, AO could not have assumed the jurisdiction to have reason to believe that the income has escaped assessment as there is no failure on the part of the petitioner to disclose truly and fully all material facts for the assessment. Decided in favour of assessee. - HONOURABLE MR. JUSTICE BHARGAV D. KARIA AND HONOURABLE MR. JUSTICE NIRAL R. MEHTA Appearance: For the Petitioner(s) No. 1: Darshan R Patel (8486). For the Respondent(s) No. 1: Mrs Kalpana K Raval (1046). ORAL JUDGMENT (PER : HONOURABLE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued the impugned notice under section 148 of the Act recording the following reasons: 6. Basis of forming reason to believe and details of escapement of income: Subsequent to the assessment order passed u/s. 143 (3) of the IT Act, it revealed that the assessee has shown construction cost at Rs. 16,02,54,257/-. Further, assessee had estimated net profit of Rs. 1,36,90,581/- @ 8.54% on cost of construction (work in progress). However, it is found that assessee has not included cost of land related expenditure of Rs. 18,23,67,650/- in cost of construction. Not being done so, resulted the less estimation of profit of Rs. 1,55,73,770/- (8.54% of Rs. 18,23,67,650/cost of construction). Hence, there is an underassessment of Rs. 1,55,73,770/-. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s already reflected in the audited balance sheet as stock-in-trade being Scheme Expenses. 9.3 It was therefore submitted that the impugned notice under section 148 of the Act is issued merely on the change of opinion and hence, the Assessing Officer cannot be said to have assumed the jurisdiction to reopen the assessment. 9.4 It was further submitted by learned advocate Mr. Patel that the impugned notice is issued beyond the period of four years from the end of the relevant assessment year and in view of the fact that the assessment order under section 143 (3) of the Act is passed as per proviso to section 147 of the Act, the Assessing Officer could not have assumed the jurisdiction to reopen the assessment. 10. On the other hand, learned S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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