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Facts
The assessee filed appeals against separate orders from the CIT(A) for Assessment Years 2013-2014 and 2014-2015. The original assessments were completed under Section 143(3) of the Income Tax Act. Reopening notices under Section 148 were issued beyond the four-year period. The reasons for reopening were based on an inquiry report concerning accommodation entries and bogus unsecured loans.
Held
The Tribunal held that the reasons recorded for reopening did not demonstrate any failure on the part of the assessee to disclose truly and fully all material facts. Furthermore, the reopening was initiated beyond the four-year period without satisfying the conditions precedent. The reassessment was considered to be based on a change of opinion without allegations of suppression of material facts.
Key Issues
Whether the reopening of assessment beyond four years under Section 147 of the Income Tax Act, 1961, is valid when there is no specific allegation of failure on the part of the assessee to disclose material facts, and the reassessment appears to be based on a change of opinion.
Sections Cited
143(3), 148, 147, 150(1), 150(2), 139(1)
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Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI
Before: SHRI GEORGE MATHAN, JM & SHRI RATNESH NANDAN SAHAY, AM
O R D E R Per Bench : These two appeals are filed by the assessee against the separate orders passed by the ld.CIT(A), National Faceless Appeal Centre (NFAC), Delhi, both dated 31.03.2025 for the assessment year 2013-2014.
It was submitted by the Ld.AR that for the assessment year 2013- 2014 the original assessment came to be completed u/s.143(3) of the Act on 29/01/2016 and for the assessment year 2014-2015 the original assessment came to be completed u/s.143(3) of the Act on 29.12.2016. Notice u/s.148 of the Act for A.Y.2013-2014 came to be issued on 28.03.2018 and for A.Y.2014-2015 the notice was issued on 24.06.2019. The Ld. AR drew our attention to reason recorded to reopening for the assessment year 2013-2014 at pages 47 to 51 of the paper book which reads as follows:-