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The impugned notices under section 148 of the Income-tax Act, 1961 and the proceedings under section 147 of the Act are not sustainable in law and should be quashed for the reason that admittedly impugned proceeding initiated under section 147 and notices issued under section 148 of the Income-tax Act, 1961, which were issued after the expiry of four years from the end of the relevant assessment year and in view of the fact that there is no whispering in the recorded reason that there was any omission or failure on the part of the assessee in disclosing fully and truly material facts for assessment and in view of the fact that the Assessing Officer could not establish that the information of alleged escaped income was not within his knowledge and was not considered at the time of passing of the assessment order under section 143 (3) of the Income-tax Act, 1961 and it came to his knowledge subsequent to the assessment order passed under section 143 (3) of the Income-tax Act, 1961 and that subsequent decision of the Hon'ble Supreme Court reversing the legal position prevailing at the time of regular assessment cannot be called an omission or failure on the part of the assessee in disclosing fully and truly the material facts necessary for relevant assessment.

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Section 147 of the Income-tax Act, 1961 – re-assessment – Reassessment invalid as there is no whispering in the recorded reason that there was any omission or failure on the part of the assessee in disclosing fully and truly material facts for assessment.[2020] 54 ITCD 087 (CAL)
Facts: The petitioner has challenged the initiation of reassessment proceeding under section 147 and notices under section 148. The issue required to be adjudicated in this Writ Petition is about legality of the impugned proceeding initiated under section 147 and notices under section 148 issued after expiry of four years from the end of the relevant assessment year on the basis of a subsequent decision of the Hon'ble Supreme Court reversing the legal position existing at the time of passing of the regular assessment under section 143(3) and in absence of specific allegation by the Assessing Officer against the assessee about the failure on the part of the assessee in disclosing fully and truly any material fact necessary for assessment as appears from the recorded reason for reopening of assessment under section 147.
Held, that notices under section 148 and the proceedings under section 147 are not sustainable in law and should be quashed for the reason that admittedly impugned proceeding initiated under section 147 and notices issued under section 148 which were issued after the expiry of four years from the end of the relevant assessment year and in view of the fact that there is no whispering in the recorded reason that there was any omission or failure on the part of the assessee in disclosing fully and truly material facts for assessment and in view of the fact that the Assessing Officer could not establish that the information of alleged escaped income was not within his knowledge and was not considered at the time of passing of the assessment order under section 143 (3) and it came to his knowledge subsequent to the assessment order passed under section 143 (3) and that subsequent decision of the Hon'ble Supreme Court reversing the legal position prevailing at the time of regular assessment cannot be called an omission or failure on the part of the assessee in disclosing fully and truly the material facts necessary for relevant assessment. Writ Petition is allowed and the impugned proceeding under section 147 and notices under section 148 are quashed.