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2022 (3) TMI 786 - BOMBAY HIGH COURTValidity of Reopening of assessment u/s 147 - Notice issued after the expiry of four years - cancellation of registration under Section 12A and 12AA of the Act belief can be formed that some income has escaped assessment and the same can be provided to taxation making disallowance under Section 11 of the Act during the course of re-assessment proceedings - HELD THAT:- Revenue has been able to show that there was failure on the part of petitioner to disclose truly and fully any material fact. Usage of the expression in the reasons that assessee has failed to disclose fully and truly material facts is only to escape the restrictions provided under Section 147 of the Act. In effect there has been no failure to disclose. We say this because the reasons for re-opening expressly provides that income to the extent of ₹ 138,90,74,595/- has to be assessed because petitioner by virtue of an order dated 27th March, 2014 has become ineligible for exemption under Section 11 of the Act with effect from 1st April, 2002. It is not alleged that petitioner had actually failed to disclose any material fact. We are afraid we cannot agree with the submissions of the Revenue in as much as proviso to Section 147 of the Act expressly makes it clear that there is bar in re-opening the assessment after expiry of four years from the end of the relevant assessment year. The proviso states “……… no action shall be taken under this section after expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment, for that assessment year”. Revenue has failed to make out a case of failure to disclose on the part of petitioner the material facts, the impugned notice dated 29th March, 2014 is not sustainable. Consequently, the order rejecting objections also have to be set aside. In the circumstances, petition is allowed .
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