Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2021 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (1) TMI 486 - HC - Income TaxReopening of assessment u/s 147 - proceedings beyond the period of four years - interest on capital and remuneration from the partnership firm and the said amount had not been offered or disclosed for the purpose of taxation - HELD THAT:- It is the settled position of law that the condition precedent for the purpose of resorting to re-opening of the assessment is that the Assessing Officer should be satisfied based on some cogent or tangible material, that the case is one of escapement of income chargeable to tax. In the absence of escapement of any income chargeable to tax, it is not open for the department to re-open the case of the assessee. Assessee is right in his submission that mere incorporation of interest on partners capital and remuneration does not necessarily mean or should be construed as mandatory. There has to be some material on record to indicate that the writ-applicant had actually received any 'interest on capital' or 'remuneration' from the partnership firm. Where no such income has been earned by the writ-applicant, the question of taxing the same does not arise at all. As relying on ALIDHRA TAXSPIN ENGINEERS & 1 [2017 (5) TMI 1684 - GUJARAT HIGH COURT] no hesitation in arriving at the conclusion that the re-opening of the assessment is not justified. - Decided in favour of assessee.
|