The Tax Publishers2021 TaxPub(DT) 1685 (Guj-HC) : (2021) 435 ITR 0097

INCOME TAX ACT, 1961

Section 148

During original assessment proceedings, assessee had filed copy of annual reports, audited profit and loss account and balance sheet along with return of income and AO took a conscious decision not to disallow donation. Accordingly, there was no failure on assessee's part to make full and true disclosure of all the material facts necessary for assessment and proposed reopening was nothing but mere change of opinion by AO which could not be upheld in view of proviso to section 147.

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 so as to reopen assessment and to disallow deduction granted earlier under section 35(1)(ii) as regards donation made to the Gujarat Cancer Society. Assessee challenged the notice by way of writ petition. Held: During original assessment proceedings, assessee had filed copy of annual reports, audited profit and loss account and balance sheet along with return of income and AO took a conscious decision not to disallow donation. Accordingly, there was no failure on assessee's part to make full and true disclosure of all the material facts necessary for assessment and proposed reopening was nothing but mere change of opinion by AO which could not be upheld in view of proviso to section 147.

Relied:CIT v. Kelvinator of India Ltd. (2010) 320 ITR 561 (SC) : 2010 TaxPub(DT) 1335 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14



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