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2015 (12) TMI 1242 - AT - Income TaxValidity of reopening u/s.148 beyond 4 years - disallowance of royalty payment and recomputation u/s.80HHC - Held that:- Reopening is permitted only if the AO has the satisfaction that the income chargeable to tax has escaped assessment by reason of the failure on the part of the assessee to make a return u/s.139 or in response to a notice issued under sec.142(1) or sec.148 or to disclose fully and truly all material facts necessary for the purpose of assessment, as held by the Madras High Court in the case of CIT v. Eco Media (P) Ltd. (2012 (6) TMI 385 - MADRAS HIGH COURT ). Further, there was no finding by the AO to record anywhere his satisfaction to believe that income chargeable to tax had escaped assessment on account of failure on the part of the assessee to disclose truly and fully all material facts necessary for assessment. Notice u/s.148 of the Act was issued beyond the period of 4 yeqrs from the end of the relevant assessment year is wholly unsustainable as held by the Jurisdictional High Court in the case of CIT v. Schwing Stetter India P. Ltd. (2015 (6) TMI 497 - MADRAS HIGH COURT ). The same view was fortified by the judgment of the Supreme Court in the case of CIT v. Kelvinator of India Ltd. (2010 (1) TMI 11 - SUPREME COURT OF INDIA ). Being so, when the AO framed the original assessment u/s.143(3) of the Act after considering the materials on record and when there is no failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment in all the issues raised by the AO for the purpose of reopening of assessment, notice u/s.148 of the Act along with consequential proceedings are to be quashed. - Decided in favour of assessee.
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