The Tax Publishers2020 TaxPub(DT) 4729 (Mum-Trib)

INCOME TAX ACT, 1961

Section 147, Proviso

In the absence of failure on assessee's part 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, therefore, quashed as invalid.

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

AO reopened assessment after expiry of four years on the ground that certain activities carried on by assessee-trust were commercial in nature and, therefore, assessee was not entitled to exemption under section 11 in view of proviso to section 2(15). Held: Activities of assessee-trust were already examined by AO during original assessment and AO recorded a clear finding that amended proviso to section 2(15) was not applicable to assessee's case. Also, AO failed to point out failure on part of the assessee to disclose fully and truly all the material facts to complete assessment and, therefore, reopening beyond four years on the same set of facts was hit by proviso to section 147 and was quashed as invalid.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10

APPELLATE TRIBUNAL RULES, 1963

Rule 34(5)(c)

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