CIT v. Viniyas Finance & Investment (P.) Ltd.

INCOME TAX ACT, 1961

--Assessment--ValidityFull and true disclosure--AO initiated poceedings on the basis of notice issued beyond the period of four years under section 148 for reopening assessment. Assessee argued whether AO had jurisdiction to issue notice as proviso to section 147 would become applicable. However, conditions for invoking proviso were not satisfied and AO completed assessment by making addition to income. Assessee aggrieved filed appeal before CIT(A) both on question of jurisdiction as well as on merits and held that reopening of assessment was valid but deleted the addition on merits. The Tribunal accepted the cross-objection on the point of jurisdiction and held the issuance of notice under section 148 was bad as there was no failure to disclose fully and truly all material facts for the purposes of assessment on the part of the assessee. Held: Tribunal had rightly held that issuance of notice under section 148 was bad in law and so the proceedings.