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| The Tax Publishers2020 TaxPub(DT) 3560 (Del-Trib) INCOME TAX ACT, 1961
Section 147
Since relevant details were very much available before AO during the course of original assessment proceedings, therefore, failure on part of AO to apply the law correctly could not confer power to reopen the case.
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Reassessment - Reason to believe - No fresh tangible material -
AO reopened assessment on the reasoning that future content expenditure debited to P&L Account should have been disallowed being contingent in nature. Held: All the relevant details were very much available before AO during the course of original assessment proceedings, therefore, failure on part of AO to apply the law correctly could not confer power to reopen the case. Accordingly, reassessment was set aside for want of fresh tangible material.
Supported by:S.S. Landmark v. ITO (2019) 117 taxman.com 825 (Bom) : 2019 TaxPub(DT) 7398 (Bom-HC) Applied Kelvinator of India Ltd. (2010) 320 ITR 561 (SC) : 2010 TaxPub(DT) 1335 (SC) Overruled Consolidated Photo and Finvest Limited (2006) 151 Taxman 41 (Del) : 2006 TaxPub(DT) 1215 (Del-HC). Relied Rolls Royce Industrial Power India Ltd. (2017) 394 ITR 547 (Del) : 2017 TaxPub(DT) 1618 (Del-HC)
REFERRED :
FAVOUR : in assessee's favour
A.Y. : 2008-09
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