2009 (12) TMI 724 - AT - Income Tax

Summary

Issues involved: Validity of reassessment proceedings u/s 147 of the Income-tax Act, 1961.

The judgment dealt with the issue of the validity of reassessment proceedings u/s 147 of the Income-tax Act, 1961. The original assessment was completed under section 143(3) of the Income-tax Act, and notice for reassessment under section 147 was issued after four years from the end of the relevant assessment year. The learned Commissioner of Income-tax (Appeals) quashed the reassessment proceedings, citing lack of failure on the part of the assessee to disclose material facts as required by the proviso to section 147. The Tribunal analyzed the provisions of section 147 and observed that reassessment cannot be initiated after four years unless there is a failure on the part of the assessee to disclose fully and truly all material facts. The Tribunal noted that the reassessment was based on facts already on record and submitted by the assessee, indicating no failure on the part of the assessee to disclose material facts. The Tribunal relied on previous High Court decisions to support its conclusion that the reassessment under section 147 was not justified.

The Tribunal upheld the order of the learned Commissioner of Income-tax (Appeals) quashing the reassessment on the ground of lack of jurisdiction. The appeal filed by the Revenue was dismissed, confirming that the reopening under section 147 was not justified. The order was pronounced in open court on December 16, 2009, upon conclusion of the hearing.