Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2012 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (4) TMI 236 - HC - Income TaxPresent petition challenging re-assessment proceedings u/s 147 and 148 of the Income Tax Act - “reasons to belief” recorded by the Assessing Officer that on perusal of P&L A/C payment towards software consultation was shown and was remitted to foreign company without deducting tax at source - such charges shall be disallowed and added back in the taxable income – assessee contented that payment made for Consultancy Services outside India are not chargeable under this Act as per Section 9(1)(vii) – Held that:- the AO during the course of the original assessment proceedings had gone into the question whether or not Section 9(1)(vii) of the Act was applicable to payment made by the petitioner and was satisfied with the reply furnished - 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 - the present case is of change of opinion as AO in the original assessment proceedings had gone into and examined the said question but accepted the stand of the petitioner- A wrong/incorrect opinion cannot be corrected in 147/148 proceedings but if the decision is erroneous and prejudicial to the interest of the Revenue, it can be corrected in proceedings under Section 263 of the Act - writ petition is allowed and the re-assessment notice is quashed.
|