Sound Casting (P) Ltd. v. Dy. CIT & Ors.

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The Tax Publishers2012 TaxPub(DT) 2129 (Bom-HC) : (2012) 047 (I) ITCL 0433 : (2012) 250 CTR 0119 : (2012) 070 DTR 0204 INCOME TAX ACT, 1961 --Reassessment--Full and true disclosureIssue of notice after four years--Notice under section 148 was issued to reopen the assessment after completion of original assessment under section 143(3) of the Act. The reopening of the assessment had admittedly taken place beyond a period of four years from the end of the relevant assessment years. Assessee contended that there was no allegation in the reasons which had been disclosed to it that there was any failure on its part to fully and truly disclose material facts necessary for assessment for that assessment year. Therefore, condition for reopening the assessment beyond a period of four years had not been fulfilled. Whereas revenue purported to reopen the assessment on the ground that the melting loss claimed by assessee was higher than what was found in a similar line of business. Held: There was no allegation in the reasons which had been disclosed to assessee that there was any failure on his part to fully and truly disclose material facts necessary for assessment. Therefore, reopening of the assessment under section 148 was not valid. Income Tax Act, 1961 Section 147 IN THE BOMBAY HIGH COURT D.Y. CHANDRACHUD & M.S. SANKLECHA, JJ. Sound Casting (P) Ltd. v. Dy. CIT & Ors. Writ Petn. No. 590 of 2012 A.Y. 2005-06 30 March, 2012 Income-tax Act, 1961, s. 147, proviso In favour of: Assessee Petitionerby : K. Gopal with Jitendra Singh & Satyendra Pandey, Respondents by : N.N. Singh, JUDGMENT *Dr. D.Y. Chandrachud, J.* Rule, by consent, made returnable forthwith. Counsel appearing on behalf of the respondents waives service. By consent the petition is taken up for hearing and final disposal. 2. The challenge in these proceedings is to a notice under section 148 of the Income Tax Act, 1961 purporting to reopen the assessment for assessment year 2005-06. The original assessment was completed under section 143(3) on 29-11-2007. Prior thereto, a notice was issued to the assessee on 21-8-2007 under section 143(2). The assessee stated that during the course of the assessment proceedings, the assessing officer verified the books of accounts and the claim of expenses made in the P&L a/c. The notice for reopening has admittedly been issued beyond a period of four years from the end of the relevant assessment year. The following reasons have been furnished for reopening the assessment: SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2012 TaxPub(DT) 2129 (Bom-HC) : (2012) 047 (I) ITCL 0433 : (2012) 250 CTR 0119 : (2012) 070 DTR 0204

INCOME TAX ACT, 1961

--Reassessment--Full and true disclosureIssue of notice after four years--Notice under section 148 was issued to reopen the assessment after completion of original assessment under section 143(3) of the Act. The reopening of the assessment had admittedly taken place beyond a period of four years from the end of the relevant assessment years. Assessee contended that there was no allegation in the reasons which had been disclosed to it that there was any failure on its part to fully and truly disclose material facts necessary for assessment for that assessment year. Therefore, condition for reopening the assessment beyond a period of four years had not been fulfilled. Whereas revenue purported to reopen the assessment on the ground that the melting loss claimed by assessee was higher than what was found in a similar line of business. Held: There was no allegation in the reasons which had been disclosed to assessee that there was any failure on his part to fully and truly disclose material facts necessary for assessment. Therefore, reopening of the assessment under section 148 was not valid.

Income Tax Act, 1961 Section 147

IN THE BOMBAY HIGH COURT

D.Y. CHANDRACHUD & M.S. SANKLECHA, JJ.

Sound Casting (P) Ltd. v. Dy. CIT & Ors.

Writ Petn. No. 590 of 2012

A.Y. 2005-06

30 March, 2012

Income-tax Act, 1961, s. 147, proviso

In favour of: Assessee

Petitionerby : K. Gopal with Jitendra Singh & Satyendra Pandey,

Respondents by : N.N. Singh,

JUDGMENT

Dr. D.Y. Chandrachud, J.

Rule, by consent, made returnable forthwith. Counsel appearing on behalf of the respondents waives service. By consent the petition is taken up for hearing and final disposal.

2. The challenge in these proceedings is to a notice under section 148 of the Income Tax Act, 1961 purporting to reopen the assessment for assessment year 2005-06. The original assessment was completed under section 143(3) on 29-11-2007. Prior thereto, a notice was issued to the assessee on 21-8-2007 under section 143(2). The assessee stated that during the course of the assessment proceedings, the assessing officer verified the books of accounts and the claim of expenses made in the P&L a/c. The notice for reopening has admittedly been issued beyond a period of four years from the end of the relevant assessment year. The following reasons have been furnished for reopening the assessment: