The Tax Publishers2022 TaxPub(DT) 8004 (Karn-HC) : (2023) 456 ITR 0316

INCOME TAX ACT, 1961

Section 147

Where that AO had not even stated or alleged that there was failure on the part of assessee to disclose fully and truly all the material facts necessary, no exception could be taken to the order passed by Tribunal wherein it was held that the said reassessment order was bad in law as the reopening under section 147 was initiated beyond 4 years.

Reassessment - Validity - Notice issued after expiry of four years -

Revenue filed appeal against the order of Tribunal setting aside the reassessment orders passed for the assessment years 2006-07 and 2007-08 by erroneously holding that the said reassessment order was bad in law as the reopening is under section 147 was initiated beyond 4 years and that there was failure on the part of assessee to disclose fully and truly all the material facts necessary for the said assessment years. Held: It is settled that if notice under section 148 is to be issued after expiry of four years or before expiry of six years, the assessee should have failed to disclose the 'material facts'. Tribunal on consideration of the material on record had held that AO had not even stated or alleged that there was failure on the part of assessee to disclose fully and truly all the material facts necessary for the said assessment years. Nothing contrary to the findings of the Tribunal was demonstrated or urged by the Revenue. In view of the settled position of law and AO not stating that there was failure on the part of the assessee to disclose material facts, no exception could be taken to the order passed by Tribunal.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :



IN THE KARNATAKA HIGH COURT

P.S. DINESH KUMAR & TG SHIVASHANKARE GOWDA, JJ.

CIT v. Canara Bank

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