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2010 (3) TMI 800 - AT - Income TaxReopening of the assessment was issued after the expiry of four years - Held that:- The assessment can be reopened after four years only if it is established that there is a failure on the part of the assessee to disclose fully and truly all material facts. From the records, it is evident that there is no finding by the Assessing Officer that there is a failure on the part of the assessee to disclose fully and truly all material facts. Even otherwise, when all the material facts are available at the time of making the original assessment under section 143(3), then, the Assessing Officer is not permitted to reopen the assessment after the expiry of four years from the end of the relevant assessment year. Assessment on the basis of change of opinion - In the case of Kelvinator of India Ltd. (2010 - TMI 35201-SUPREME COURT OF INDIA ) the concept of "change of opinion" has not been obliterated and an assessment cannot be reopened on the basis of mere change of opinion.The Assessing Officer has power to reopen, provided there is 'tangible material' to come to the conclusion that there is escapement of income from assessment. Reasons must have a live link with the formation of the belief. Whether royalty payment be treated as revenue expenditure or capital expenditure - Held that:- question has to be decided as per the terms of the agreement - In view of Alembic Chemical Works Co. Ltd. (1989 - TMI - 5277 - SUPREME Court) where assessee is given licence to manufacture specific products for a limited period.and there is no transfer of any technical know-how it will be treated as revenue expenditure.
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