Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (1) TMI 153 - DELHI HIGH COURTReopening of assessment - assessee has failed to disclose all material facts truly and fully - Held that:- Revised return of income for the assessment year 2002-03 in March 2004 and filing the return of income for the assessment year 2003-04 on 2.12.2003 that the loss of Rs.2,52,14,220/- was not claimed in the revised return of income for the assessment year 2002-03 and the reversal of the aforesaid loss in the books of account for the year ended 31.03.2003, relevant to the assessment year 2003-04 could not be subjected to tax for that assessment year. This was consistent with the position that neither the income nor the loss relating to the paper board division could be considered to belong to the petitioner on and after 01.10.2001. The reduction of the income for the assessment year 2003-04 by the loss of Rs.2,52,14,220/- was therefore consistent with the memorandum of understanding, the petitioner had also reduced the income for the assessment year 2003-04 by the aforesaid loss. The ultimate position was that since the loss relating to the paper board division incurred between 01.10.2001 to 31.3.2002 was reduced from the loss of the petitioner company to show a reduced loss for that year, the profit shown for the year ended 31.3.2003 relating to the assessment year 2003-04 should correspondingly be reduced by the aforesaid loss. This position was duly informed to the assessing officer in the return and the documents and accounts accompanying it. The factual position thus show that the complete particulars relating to the memorandum of understanding and its impact on the profit and loss of the petitioner company was disclosed by the petitioner in its return of income. There was no failure on the part of the petitioner to disclose the primary facts causing no escapement of income - notice u/s 148 is therefore, without jurisdiction - in favour of assessee.
|