Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (2) TMI 1379 - HC - Income TaxReopening of assessment - notice issued beyond the period of four years - reasons to believe - Held that:- The question of the assessee failing to disclose truly and fully all material facts necessary for assessment therefore becomes important. Nothing stated in the reasons recorded or from the materials on record suggest that the assessee failed to disclose truly and fully all material facts. AO has examined the materials on record during the original assessment proceedings, now to form a belief that assessee's treatment of capital gain tax was erroneous. Being a notice which was issued beyond a period of four years, this aspect therefore becomes important. As correctly pointed out by the counsel for the petitioner, there was no additional or extraneous material at the command of AO now to believe that income chargeable to tax has escaped assessment. Only on this ground, the notice of reopening needs to be quashed. This Court in case of Adani Exports vs Deputy Commissioner Of Income Tax (1998 (12) TMI 51 - GUJARAT High Court) and several times repeated by the Supreme Court later, reopening cannot be resorted to under the insistence of the audit party, particularly when the Assessing Officer holds a contrary belief. From this angle, we have perused the original files and do not find that the Assessing Officer independently believed that the audit note or the audit objection was otherwise valid. - Decided in favour of assessee.
|