INCOME TAX ACT, 1961,

Sections 148 & 80IA

Reassessment - Notice issued under section 148 - Proceedings barred by limitation -

AO issued notice under section 148 for reopening of assessment relating to issue of deduction under section 80-IA. Assessee challenged the proceedings on the ground that the proceedings were barred by limitation as period of four years for initiation of proceedings for reassessment was expired. Further that, it had disclosed all material particulars, therefore, two year extension period was not applied Held: Conditions provided for availment of extended period of limitation were that (i) escapement of income should be by virtue of failure of assessee to file a return of income or (ii) to disclose fully and truly all material facts necessary for the assessment of income for that year. In the present case, the assessee had not defaulted in the filing of a return of income. Further that, the assessee had disclosed all material particulars relating to the issue of deduction under section 80-IA. Therefore, the extended period of limitation could not be availed of by Revenue when all primary particulars were available on file. Thus, the proceedings for reopening of the assessment were quashed.

REFERRED : ACIT v. ICICI Securities Primary Dealership Ltd (2012) 348 ITR 299 (SC) : 2012 TaxPub(DT) 2968 (SC)

FAVOUR : In assessee's favour

A.Y. :

SUBSCRIBE FOR FULL CONTENT