Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (5) TMI 413 - HC - Income TaxReopening of assessment - business support charges, guarantee fees paid to the holding company are not for business expediency & these payments are also being a subject matter of TP not verified in the transfer pricing proceedings by the TPO - Held that:- Reopening of the assessment is within a period of four years. In view of the position in law as laid down by the Supreme Court Kalyanji Mavji And Co. Versus Commissioner of Income-Tax, West Bengal II (1975 (12) TMI 2 - SUPREME Court) no hesitation in coming to the conclusion that the Assessing Officer was acting within jurisdiction in reopening the assessment for A.Y. 2006-07 on the basis of the assessment proceedings for A.Y. 2007-08. The mere fact that the income has been assessed in the hands of the parent company of the assessee would not be demonstrative of the allowability of the expenditure under Section 37(1). Similarly, the considerations which weigh in the passing of an order under Section 195(2) would clearly not be dispositive of the jurisdiction of the Assessing Officer to reopen an assessment under Section 148. For these reasons, no reason or justification to interdict the exercise of the jurisdiction of the Assessing Officer to reopen an assessment under Section 148. The reopening within a period of four years in the present case is based on tangible material. against assessee.
|