INCOME TAX ACT, 1961

Section 148

Reassessment - Notice after four years - No failure on assessee's part to disclose truly and fully all material facts -

AO issued notice under section 148 after expiry of four years from the end of relevant assessment year on the ground of non-deduction of tax from Wharfage expenses paid by the assessee.Held: On perusal of reasons recorded as well as material on record, it was evident that there was no failure on part of assessee to disclose truly and fully all material facts. It is settled proposition of law that for fishing inquiry, reopening of assessment is not permissible, that too, reopening beyond the period of four years from the end of relevant assessment year when it was not even the case of AO that there was a failure on part of assessee to disclose truly and fully all material facts. Accordingly, reopening was hit by proviso to section 147 and was, therefore, set aside.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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