RAJENDRA KUMAR JAIN,KOLKATA vs. ITO, WARD 30(1),, KOLKATA

It was submitted by the ld. AR that the impugned assessment year in the case of the assessee is 2012-13. It was the submission that the return of income has been filed by the assessee on 05.09.2012. It was the submission that original assessment order u/s 143(3) was passed on 30.03.2015. It was the submission that notice u/s 148 has been issued after four years from the end of the impugned assessment year. As per 1st Proviso to section 147 of the Act, the reasons should mention the failure on the part of the assessee to disclose fully and truly all the material facts required for the assessment. It was the submission that the reasons recorded in the case of the assessee reads as under:

The reasons recorded does not mention of such failure but in fact only mentions further verification and investigation of the genuineness of the purchases or in other forms in the books of account of the assessee. It was the submission that the notice issued u/s 148 is liable to be quashed. 5. In reply, the ld. DR vehemently supported the orders of the Assessing Officer and ld. CIT(A). 6. I have considered the rival submission. A perusal of the facts of the present case clearly shows that the original assessment in the case of the assessee u/s 143(3) was done on 30.03.2015. the notice u/s 148 has been issued on 28.03.2019 which is beyond the four years from the end of the impugned assessment year. A perusal of the reasons recorded does not show that the Assessing Officer has recorded anywhere that there was failure on the part of the assessee to disclose fully and truly all the material facts required for the assessment. My view is further supported by the decision of the Hon’ble Supreme Court in the case of ACIT v. CEAT Ltd. (2022) 449 ITR 171 (SC). Consequently, the notice issued u/s 148 dated 28.03.2019 stands quashed and consequential assessment are also quashed.

In the result, the appeal of the assessee stands allowed. Order pronounced in the open court on 05/05/2026.