Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (9) TMI 830 - BOMBAY HIGH COURTReopening of assessment u/s 148 – Bar of limitation – Held that:- Assessee contended that the notice dated 23 March 2003 is beyond the period of limitation provided u/s 149 of the Act and not extended by Section 150 of the Act - this is for the reason that there is no finding given in the order of the Tribunal that deduction claimed on account of dividend is not available u/s 80M of the Act - the assessment order passed in regular assessment u/s 143(3) of the Act had allowed the claim for deduction u/s 80M of the Act – thus, the present notice is mere change of opinion on the part of the AO - there is no allegation of any failure to disclose truly and fully all material facts necessary for assessment on the part of the petitioner - the Tribunal while reversing the order dated 22 August 1997 passed in block assessment and deleting the addition records that the assessee has brought evidence on record that the dividend has been distributed on 25 November 1995 i.e. before the due date 30 November 1995 - Thus, there is no finding given by the Tribunal in the order dated 25 October 2002 which could justify the issuing notice beyond the period of six years – relying upon ITO vs. Murlidhar B. Deo [1964 (1) TMI 5 - SUPREME Court]. The notice is not saved by Section 150 of the Act and is barred by limitation as having been issued beyond the prescribed period u/s 149 of the Act - Besides the notice having been issued almost 7 years after the end of the relevant assessment year does not indicate any failure on the part of the petitioner to disclose truly and fully all material facts necessary for assessment - the assessment order passed in the regular assessment proceedings u/s 143(3) of the Act passed on 3 March 1998 was passed by the AO subsequent to the block assessment order passed on 22 August 1997 and after considering all the facts had allowed the deduction u/s 80M of the Act - the grounds/reasons communicated to the assessee in support of the notice dated 23 March 2003 is a clear case of change of opinion and would thus be without jurisdiction – Decided in favour of assessee.
|