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| The Tax Publishers2021 TaxPub(DT) 2087 (Del-Trib) INCOME TAX ACT, 1961
Section 147
Subsequent decision of the Court reversing legal position prevailing at the time of original assessment could not be called an omission or failure on part of assessee to disclose fully and truly the material facts necessary for assessment. Accordingly, section 148 notice issued beyond four years was hit by proviso to section 147 and was, therefore, set aside.
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Reassessment - Beyond four years - Subsequent decision of the Court reversing legal position prevailing at the time of original assessment - Omission or failure on part of assessee to disclose fully and truly material facts
AO based on subsequent decision of the Court reversing legal position prevailing at the time of original assessment, reopened assessment after expiry of four years from the end of relevant assessment year and made addition. Held: Subsequent decision of the Court reversing legal position prevailing at the time of original assessment could not be called an omission or failure on part of assessee to disclose fully and truly the material facts necessary for assessment. Accordingly, section 148 notice issued beyond four years was hit by proviso to section 147 and was, therefore, set aside.
Relied:Dy. CIT v. Simlx Concrete Piles (India) Ltd. (2013) 358 ITR 129 (SC) : 2012 TaxPub(DT) 3096 (SC), Tantia Construction Co. Ltd. v. Dy. CIT & Ors. (2002) 257 ITR 84 (Kol) : 2002 TaxPub(DT) 1431 (Cal-HC), Titanor Components Ltd. v. Asstt. CIT (2012) 343 ITR 183 (Bombay) : 2011 TaxPub(DT) 2162 (Bom-HC) and Calcutta Club Ltd. v. ITO W.P. No. 719 of 2014, vide Order, dated 14-2-2020 : 2020 TaxPub(DT) 1099 (Cal-HC). Distinguished:A.L.A. Firm v. CIT (1999) 189 ITR 285 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2004-05
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