2014 (3) TMI 759 - DELHI HIGH COURT

Power of reopening of assessment u/s 147 Explanation 1 r.w section 143(1) of the Act - Advance tax paid and considered it as capital receipt – Held that:- The decision in CIT vs. Kelvinator (India) Ltd. [2010 (1) TMI 11 - SUPREME COURT OF INDIA] followed - there was no tangible material and that the mere circumstance that advance tax to the tune of Rs.27.6 lakhs was paid did not amount to admission by him - a valid reopening of assessment has to be based only on tangible material to justify the conclusion that there is escapement of income - the note forming part of the return clearly mentioned and described the nature of the receipt under a non-compete agreement - The reasons for the notice u/s 147 nowhere mentioned that the revenue came up with any other fresh material warranting reopening of assessment – thus, mere conclusion of the proceedings u/s 143(1) ipso facto does not bring invocation of powers for reopening the assessment – the order of the Tribunal upheld – Decided against Revenue.