Held that the assessee did not make a true and full disclosure of all the material facts and the Assessing Officer had reason to believe that the assessee’s income for the relevant year had escaped assessment. The notice dated March 22, 2020 issued under section 148 of the Act as well as all the proceedings undertaken in consequence of the notice, including the order dated January 25, 2022 passed by the National Faceless Assessment Centre rejecting the assessee’s objections against the notice, did not suffer from any illegality. The notice of reassessment and consequent proceedings were valid. The audit party is entitled to point out a factual error or omission in the assessment. Reopening of the case on the basis of a factual error pointed out by the audit party is permissible under law. (AY.2013-14)
Sahara Credit Co-Operative Society Ltd. v. Dy. CIT (2022) 447 ITR 597/ 141 taxmann.com 384 /(2023) 331 CTR 432/ 223 DTR 158 (All.)(HC)/Editorial:Notice issued in SLP filed by assessee, Sahara Credit Cooperative Society Ltd. v. DCIT (2022) 289 Taxman 404 (SC)
S. 147 : Reassessment-After the expiry of four years-Failure to disclose material facts-Audit party is entitle to point out a factual error-Subsequent discovery that facts regarding depositors was inadequate-Approval communicated to the Assessing Officer-b Notice valid. [S. 148, Art. 226]