The Tax Publishers2020 TaxPub(DT) 3185 (Mum-Trib)

INCOME TAX ACT, 1961

Section 147, Proviso

Since there was no failure on part of assessee to disclose fully and truly all material facts during original assessment, reopening of assessment beyond four years was hit by proviso to section 147 and was quashed.

Reassessment - Beyond four years - No failure to disclose fully and truly all material facts -

AO received information from investigation wing as to assessee having received accommodation entries from certain entry operator. Accordingly, AO reopened assessment after expiry of four years from the end of relevant assessment year and made addition. Held: As evident in the reasons recorded for reopening of assessment there was no mention about failure of assessee to fully and truly disclose material facts before AO in the original assessment proceedings under section 143(3), and, therefore, reopening beyond four years was hit by proviso to section 147 and was, therefore, quashed as invalid.

Relied:Sound Casting (P) Ltd. v. Dy. CIT (2012) 250 CTR 119 (Bom) : 2012 TAxPub(DT0 2129 (Bom-HC) and Hindustan Lever Ltd. v. R.B. Wadkar (2004) 268 ITR 339 (Bom) : 2004 TaxPub(DT) 1320 (Bom-HC).

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2008-09



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