The Tax Publishers2020 TaxPub(DT) 4873 (Mum-Trib)

INCOME TAX ACT, 1961

Section 147

In the absence of failure on assessee's part to disclose fully and truly all mateiral facts, 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 from the end of relevant assessment year on the reasoning of audit objection that assessee had claimed excess allowance of deduction under section 36(1)(viia) and under section 36(1)(viii). Held: Reopening of assessment was done, based on internal audit query and all the relevant information required to reopen assessment was already available on record and original assessment was completed only after due verification by the then AO and there was no new material brought on record by the concerned AO. Accordingly, there was no failure on assessee's part to disclose fully and truly all mateiral facts and, therefore, reopening beyond four years was hit by proviso to section 147 and was, therefore, quashed as invalid.

Followed:Venkatesan Raghuram Prasad v. ITO (2018) 94 Taxmann.com 249 (mad) : 2018 TaxPub(DT) 3444 (Mad-HC), Dy. CIT v. ICICI Bank (2019) (202 TTJ 560) (Mum-Trib) : 2019 TaxPub(DT) 4796 (Mum-Trib) and ITA No. 5822/Mum/2013 ACIT v. Latin Manharlal Securities Pvt. Ltd..

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10



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