|The Tax Publishers2020 TaxPub(DT) 5443 (Mad-HC) : (2021) 279 TAXMAN 0292
INCOME TAX ACT, 1961
Section 147, Proviso
In the absence of failure of assessee to make full and true disclosure, section 148 notice issued beyond four years was hit by proviso to section 147 and was, therefore, set aside.
Reassessment - Notice issued beyond four years - No failure to disclose fully and truly all material facts -
AO issued section 148 notice after expiry of four years from the end of relevant assessment year on the ground that assessee had not offered any lease/rental income from Wind Turbine Generator (WTG) and hence, income chargeable to tax had escaped assessment. Held: Return of income filed by assessee was accomanied by financials that contained note explaining lease transaction and a perusal of reasons for re-assessment made it clear that the reasons were based entirely upon documentation accomanying the return and no material extraneous to that already on record or anew, was discovered by AO indicating income that had escaped taxation. Accordingly, escapement of income, if any, could not be attributed to failure of assessee to make full and true disclosure and notice issued beyond four years was hit by proviso to section 147 and was, therefore, set aside.
FAVOUR : In assessee's favour.
A.Y. : 2000-01
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