Court held that the assessee had disclosed all the facts before the Assessing Officer in one form or the other ; the assessment was reopened four years after its acceptance sans fresh material emanating subsequently, it was not the case of the Assessing Officer that the assessee had suppressed any income or any material facts ; the assessment was not reopened on the basis of any new material fact which came to light after the passing of the assessment order ; a reply came to be given to the audit objection by the Assessing Officer for dropping the objections raised. The notice of reassessment was not valid.( AY.2012-13)
Madurai Power Corporation Private Limited v Dy. CIT (2020) 428 ITR 117 (AP) (HC)
S.147: Reassessment- After the expiry of four years- No failure to furnish material facts necessary for assessment — Purchase and sale of shares- Audit objection – Reply by the Assessing Officer to drop the proceedings- Notice is held to be not valid [ S. 56 (2) (vii) (a),148 ]