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With due respect, Judgement is contrary to the judgement of Hon’ble Supreme Court in the case of CIT vs Foramer France (264 ITR 566) in which judgement in the case of FORAMER v. CIT [2001] 247 ITR 436 affirmed.
Going through the judgement in the case under consideration there is no finding that condition laid under first proviso to section 147 not applicable in the case under consideration or the reassessment proceeding valid on the ground that assessee failed to disclose fully and truly all material facts necessary for his assessment.
There is clear statutory provision that merely on the basis of allegation/ evidence of escapement or evasion of income, reassessment proceeding cannot be issued in the case of assessment framed earlier u/s 143(3) or 147. In such case in addition to belief of escapement additional requirement that ‘such escapement is by reason of failure on the part of assessee to disclose fully and truly all material facts necessary for his assessment’ must be complied with.
When ITAT considering a specific statutory provision, dismiss the reassessment proceeding, without holding that such statutory provision not applicable in the case under consideration or the condition imposed in the statutory provision has been fulfilled, judgement of setting aside ITAT order did not appear a correct judicious approach.
Let’s see what will happen when matter reach to Hon’ble Supreme Court