The Tax Publishers2019 TaxPub(DT) 1003 (Bom-HC) : (2019) 261 TAXMAN 0380

INCOME TAX ACT, 1961

Section 147, proviso Section 148

Since in its return of income assessee had claimed. expenditure being subject matter of section 148 notice and AO had occasion to examine assessee's claim during section 143(3) proceedings, therefore, reassessment notice issued beyond four years could not be sustained in the absence of assessee's failure to disclose fully and truly all material facts.

Reassessment - Notice beyond four years - No failure to disclose fully and truly all material facts -

AO issued notice under section 148 after expiry of four years from the end of relevant assessment year on the reasoning that expenditure incurred on 'Colour Idea Stores' as a part of its Advertisement and Sales Promotion expenses was not allowable.Held: As apparent, in its return of income assessee had claimed expenditure on 'Colour Idea Stores' and during regular assessment proceedings under section 143(3) AO had occasion to examine assessee's claim. Thus, there was a complete disclosure of all primary material facts on assessee's part and impugned notice was hit by proviso to section 147 and therefore, same was set aside.

Relied:Calcutta Discount Co. v. ITO, 41 ITR 191 (SC) : 1961 TaxPub(DT) 0130 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2011-12



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