Lok Housing and Construction Ltd. v. Dy. CIT

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The Tax Publishers2012 TaxPub(DT) 0736 (Bom-HC) : (2012) 047 (I) ITCL 0364 : (2012) 348 ITR 0335 : (2012) 246 CTR 0213 : (2011) 064 DTR 0401 INCOME TAX ACT, 1961 --Reassessment--Full and true disclosureNotice issued after expiry of four years--Assessee filed a return of income in which it disclosed the transaction of financial restructuring with the lenders and the resultant waiver of interest. AO completed assessment under section 143(3). Subsequently AO reopened the assessment on the ground that above interest amount waiver had escaped the assessment. Assessee argued that notice was issued beyond a period of four years and there was no failure on the part of it to disclose fully and truly all the material facts relating to the assessment for that year. Held: Reasons which had been disclosed by AO did not refer to any failure on the part of assessee to disclose material facts, nor was there any allegation of suppression on the part of assessee, therefore, notice issued under section 148 beyond the period of four years was void-ab-initio Income Tax Act, 1961 Section 148 IN THE BOMBAY HIGH COURT DR. D.Y. CHANDRACHUD & A.A. SAYED, JJ. Lok Housing and Construction Limited v. Dy. CIT Writ Petition No. 1634 of 2011 20 October, 2011 Petitioner by : F.B. Andhyarujina, Senior Advocate with Shri Atul K. Jasani, Respondent by : Suresh Kumar, ORDER SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2012 TaxPub(DT) 0736 (Bom-HC) : (2012) 047 (I) ITCL 0364 : (2012) 348 ITR 0335 : (2012) 246 CTR 0213 : (2011) 064 DTR 0401

INCOME TAX ACT, 1961

--Reassessment--Full and true disclosureNotice issued after expiry of four years--Assessee filed a return of income in which it disclosed the transaction of financial restructuring with the lenders and the resultant waiver of interest. AO completed assessment under section 143(3). Subsequently AO reopened the assessment on the ground that above interest amount waiver had escaped the assessment. Assessee argued that notice was issued beyond a period of four years and there was no failure on the part of it to disclose fully and truly all the material facts relating to the assessment for that year. Held: Reasons which had been disclosed by AO did not refer to any failure on the part of assessee to disclose material facts, nor was there any allegation of suppression on the part of assessee, therefore, notice issued under section 148 beyond the period of four years was void-ab-initio

Income Tax Act, 1961 Section 148

IN THE BOMBAY HIGH COURT

DR. D.Y. CHANDRACHUD & A.A. SAYED, JJ.

Lok Housing and Construction Limited v. Dy. CIT

Writ Petition No. 1634 of 2011

20 October, 2011

Petitioner by : F.B. Andhyarujina, Senior Advocate with Shri Atul K. Jasani,

Respondent by : Suresh Kumar,

ORDER