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2021 (9) TMI 774 - MADRAS HIGH COURTReopening of the assessment u/s 147 and issuance of notice u/s 148 - eligible reason to believe as mandated u/s 147 - reopening of beyond the period of four years and within a period of six years - TDS u/s 195 - HELD THAT:- Reasons stated in the said proceedings dated 11.04.2014 reveals that no TDS has been made on the Business Development Commission and the same needs to be disallowed as per Section 40(a)(ia). The objections submitted by the writ petitioner on 29.04.2014 in detail was also disposed of by the respondents in vide proceedings dated 07.10.2014. In the said proceedings, the respondents have clearly stated that "the matter of non-deduction of tax on business development commission paid to a non-resident was not looked into. This matter was not discussed in the Assessment Order.” Further, relying on Section 9(1), the respondents have stated that “necessary tax has not deducted on the business development commission paid to non-resident. Business development commission is in the nature of technical services fees paid to the parent entity. The non-deduction of tax in the above payment, raised the liability to tax, which is escaped to assessment”. This Court is of the opinion that the reasons furnished for reopening of the assessment cannot be gone into disputed facts and circumstances in the writ petition. Sufficiency of reasons cannot be gone into by the High Court. If there is a reason to believe and such reason to believe is sensible, then it is sufficient to invoke the provisions of Section 147 of the Income Tax Act and the High Court cannot go into 'sufficiency' of the reasons provided for reopening of such assessment. Sufficiency of the reasons deserves complete adjudication of the disputed facts, which cannot be gone into - this Court has no hesitation in arriving a conclusion that the Revenue has to establish the reason to believe for reopening of assessment and it is for the petitioner to establish that such reasons are insufficient for reopening or he has already disclosed truly and fully all materials facts necessary for assessment or under the provisions of the Act, he has got enough defence to rebut the reasons furnished for reopening of the assessment. The writ petitioner is at liberty to avail the opportunities to be provided under the provisions of the Income Tax Act, to do so. This Court do not find any acceptable reason for the purpose of interfering with the initiation of proceedings under Section 147 of the Act for reopening of assessment and accordingly, the respondents are empowered to proceed with the process of assessment and conclude the same as expeditiously as possible. WP dismissed.
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