Reopening—Failure to disclose Full and true facts—Assessee filed return of income—AO completed original assessment u/s 153A r/w s. 143(3)—Thereafter, assessee’s case was re-opened u/s 147 on ground that closing balance in current account of assesse with firm M/s. C was more than opening balance—Assessee had credited an amount to account which was not disclosed in return of income and same had escaped from assessment—Assessee could not furnish any valid explanation with regard to difference in closing balance with firm M/s. C and accordingly, addition was made to assessee’s income in absence of satisfactory explanation—CIT(A) held that assessment got rightly reopened since assessee failed to disclose amount credited into his current account with firm and source to be explained for same had not at all been a subject matter of discussion during search assessment proceedings—In absence of source explained for alleged amount, addition made by AO was confirmed by CIT(A)—Held, while completing assessments, AR appeared and filed copy of bank statements, partners current account as appearing in assessee’s books of accounts—AO, after being satisfied with reply given by assessee completed assessments u/s 153A r/w s. 143(3)—In this situation, it could not be said that assessees had failed to disclose all material facts fully and truly required for assessment—AO after going through books of account and other documents filed before him had completed the assessments and chose not to make addition on issues raised in reasons recorded for re-opening of assessments—Therefore, there was no negligence on assessee’s part in furnishing required details for completing assessments—Assessee’s appeal allowed.

KOCHANIYAN UNNITHAN & ANR. vs. DEPUTY COMMISSIONER OF INCOME TAX & ANR

(2019) 55 CCH 0211 CochinTrib