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| The Tax Publishers2020 TaxPub(DT) 1099 (Cal-HC) : (2020) 426 ITR 0157 : (2020) 315 CTR 0089 INCOME TAX ACT, 1961
Section 148, proviso to section 147
As evident, question of allowability of exemption was already considered and allowed by AO during original assessment and there was no whispering in reasons recorded that there was any omission or failure on part of assessee in disclosing fully and truly material facts for assessment , therefore, reassessment notice issued beyond four years was hit by proviso to section 147 and was, therefore, invalid.
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Reassessment - Notice beyond four years - No failure on part of assessee in disclosing fully and truly the material facts necessary for assessment -
AO issued section 148 notice after expiry of four years from the end of relevant assessment year on the ground that income earned by assessee-section 25 company by way of interest from corporate members of club was taxable income and did not come under ambit of mutuality principle and therefore, income-tax had to be paid. Assessee challenged the notice by way of writ petition.Held: As evident, question of allowability of exemption was already considered and allowed by AO during original assessment and there was no whispering in reasons recorded that there was any omission or failure on part of assessee in disclosing fully and truly material facts for assessment and, therefore, reassessment notice issued beyond four years was hit by proviso to section 147 and was, therefore, quashed as invalid.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2007-08 & 2008-09
IN THE CALCUTTA HIGH COURT
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