|The Tax Publishers2020 TaxPub(DT) 5300 (Kol-Trib) : (2021) 085 ITR (Trib) 0252
INCOME TAX ACT, 1961
Section 147, Proviso
In the absence of assessee's failure to disclose truly and fully disclosure of all material facts necessary for assessment, reopening beyond four years was hit by proviso to section 147 and, therefore, reassessment was set aside.
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 account of discrepancy in the matter of receipt of service chrges from M/s. MNYL. Assessee contended that discrepancy had been duly explained/reconciled by assessee during original assessment and same stood accepted by then AO.Held: In the reasons recorded, there was no mention or allegation about assessee's failure to disclose truly and fully disclosure of all material facts necessary for assessment. Moreover, precise issue was raised by AO during original assessment wherein assessee had explained that discrepancy had occurred solely on account of different accounting method followed by assessee and M/s. MNYL. Accordingly, reopening beyond four years was hit by proviso to section 147 and, therefore, reassessment was set aside.
Relied:Calcutta Discount Co Ltd. (1961) 41 ITR 191 (SC) : 1961 TaxPub(DT) 130 (SC).
FAVOUR : In assessee's favour.
A.Y. : 2008-09
IN THE ITAT, KOLKATA BENCH
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