2023 (1) TMI 424 - HC - Income Tax
Reopening of assessment u/s 147 - Reason to believe - as argued there was no failure to disclose fully and truly any material fact necessary for the assessment which was a condition precedent for reopening the assessment in terms of section 148 - HELD THAT:- As during the scrutiny assessment, the AO had sought from the petitioner the relevant details with regard to the advertisement and sales promotion expenses which details were furnished by the petitioner vide its response - It can also be seen that the AO had disallowed some of the expenses which had been reflected in the break-up under the head “details of advertisement and sales promotion expenses” while passing the final order of assessment, which reflects that the AO had applied its mind to the appellant’s claim while passing the order under section 143(3) - reasons do not disclose as to what material or fact was not disclosed by the assessee. It, therefore, cannot be said that there was any failure on the part of the petitioner to disclose fully and truly facts which were material and necessary for assessment.
Thus the notice impugned does not satisfy the jurisdictional requirement of section 147 of the Act and, therefore, is held to be unsustainable, and is accordingly quashed. Decided in favour of assessee.