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| The Tax Publishers2020 TaxPub(DT) 0868 (Guj-HC) : (2020) 426 ITR 0146 INCOME TAX ACT, 1961
Section 148
As there was no failure on the part of assessee to disclose truly and fully all material facts necessary for assessment, therefore, reopening beyond four years was hit by proviso to section 147 and reassessment notice was quashed as invalid.
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Reassessment - Notice 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 debited only direct expenses to windmill division, where all the common expenses had been debited to tea division, thereby artificially pumping its income eligible for deduction under section 80-IA leading to lower returned income and consequently lower taxes.Held: Full separate accounts of both the divisions were maintained and also presented before AO during the course of assessment and accordingly there was no failure on the part of assessee to disclose truly and fully all material facts necessary for assessment. Therefore, reopening beyond four years was hit by proviso to section 147 and reassessment notice was quashed as invalid.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
IN THE GUJARAT HIGH COURT
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