| |
| The Tax Publishers2019 TaxPub(DT) 6788 (Del-Trib) INCOME TAX ACT,1961
Section 147, proviso
As apparent from reasons recorded for reopening of assessment, AO had not alleged any failure on the part of assessee to disclose truly and fully all material facts which was a pre-condition for taking action under section 148 after expiry of four years from the end of relevant assessment year. Accordingly, reassessment was hit by proviso to section 147 and was, therefore, set aside.
|
Reassessment - Beyond four years - No failure to disclose fully and truly all material facts -
AO reopened assessment after expiry of four years from the end of relevant assessment year on the ground that assessee had claimed and was allowed franchise fee of Rs. 2,40,00,000, however, franchise fee being of capital nature was not allowable and should have been disallowed and added back to the income of the assessee after allowing depreciation at the rate of 25% Held: As apparent from reasons recorded for reopening of assessment, AO had not alleged any failure on the part of assessee to disclose truly and fully all material facts which was a pre-condition for taking action under section 148 after expiry of four years from the end of relevant assessment year. Accordingly, reassessment was hit by proviso to section 147 and was, therefore, set aside.
Relied:Bharti Infratel Ltd. v. DCIT (2019) 411 ITR 403 (Delhi) : 2019 TaxPub(DT) 0732 (Del-HC); and Hitech Outsourcing Services v. Pr. CIT (2018) 408 ITR 129 (Guj.) : 2018 TaxPub(DT) 5110 (Guj-HC)
REFERRED :
FAVOUR :
A.Y. :
 SUBSCRIBE FOR FULL CONTENT
|