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TMI Blog2025 (3) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... ee also filed a Cross Objection against the aforesaid order of CIT(A), NFAC. 2. Brief facts of the case are that the assessee is a private limited company engaged in the business of manufacturing, trading and processing of paddy and rice. The return of income was filed on 26.08.2012 declaring total income of Rs. 27,48,485/-. The case of the assessee was taken up for scrutiny by issue of notice u/s 143(2) on 12.8.2013 and after considering the submissions and details filed by the assessee in response to the notices issued u/s 142, the assessment order was passed u/s 143(3) dt. 23.02.1015 wherein total income of the assessee was assessed at Rs. 27,98,490/- after making disallowance of Rs. 50,000/- out of various expenses claimed. Subsequentl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction. Further according to assessee there was failure on the part of the assessee to fully and truly disclose the material facts of the case. 5. Before us, the Ld. AR of the assessee argued that during the course of assessment proceedings, assessee has filed all the requisite details which are placed at paper book pages 43 to 325 filed before us. He further contended that in the reasons recorded, available at page 433 of the paper book, it is alleged that there has been failure on the part of the assessee to truly and fairly disclose all the material facts however, no instance has been pointed out as to how there has been failure on the part of the assessee. In the reason recorded, it is alleged that assessee has obtained accommodation en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1189 (Bombay). Ld. AR further argued that the AO has recorded the reasons without application of mind to the facts and circumstances of the case. He submits that in para 8 of the reason recorded, AO observed that provisions of clause (a) of Explanation 2 to section 147 are applicable which applies in cases where income chargeable to tax has escaped assessment for non-filing of return of income. Such allegation is contrary to the fact as return was filed by the assessee which was already considered by AO while framing the assessment u/s 143(3) of the Act. With regard to the alleged accommodation entity, Ld. AR drew our attention to the page 352 of the paper book which is the copy of bank statement of assessee with State Bank of India, Sonep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompleted u/s 143(3) wherein the AO after examine all the submissions filed by the assessee as available on records, reached to the conclusion that the trading results declared by the assessee are correct and petty disallowance of Rs. 50,000/- out of various expenses claimed was made. Thereafter, based on some information received from the Investigation Wing, the AO framed an opinion that the assessee has received accommodation entry of Rs. 21,789,860/- from Shri Hitesh Jian and reopened the assessment beyond the period of four years. The reason recorded before issue of notice u/s 148 are available at pages 433-436 of the PB filed by the assessee. Since beginning of the reassessment proceedings, the assessee has objected the reopening and fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived from Investigation wing, the AO has tried to reopen the assessment without in any manner verifying the said information with the material available on record. This is clearly an effort of the AO to review the completed proceedings. The hon'ble Supreme court in the case of CIT Vs. Kelvinator of India Ltd reported in (2010) 187 TAXMANN 312 (SC) has held as under: "the assessing officer has no power to review; he has the power to re-assess, but re-assessment has to be based on fulfilment of certain pre -condition and if the concept of 'change of opinion' is removed, then, in the garb of re-opening the assessment, the review would take place. One must treat the concept of 'Change of opinion' as an in-built test to check abuse of power ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed must be based on evidence. The Assessing Officer, in the event of challenge to the reasons, must be able to justify the same based on material available on record. He must disclose in the reasons as to which fact or material was not disclosed by the assessee fully and truly necessary for assessment of that assessment year, so as to establish the vital link between the reasons and evidence. That vital link is the safeguard against arbitrary reopening of the concluded assessment. The reasons recorded by the Assessing Officer cannot be supplemented by filing an affidavit or making an oral submission, otherwise, the reasons which were lacking in the material particulars would get supplemented, by the time the matter reaches the court, on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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