Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (2) TMI 641 - AT - Income TaxReopening of assessment u/s 147 - reopening of beyond four years from the end of the concerned assessment year - TP Adjustment - HELD THAT:- AO/TPO after applying his mind and considering the submissions of the assessee, had accepted the arms length price on reimbursement of expenses without making any TP adjustment towards the same. Thus, it is clear that the assessee had disclosed all the material facts during the regular assessment proceedings. Reopening of assessment proceedings has been initiated on the basis of ITAT’s order pertaining to assessee’s own case for assessment years 2005-2006 and 2006-2007. The reasons recorded for reopening the assessment for the relevant assessment year clearly spells that the reopening of assessment has been initiated only on the basis of the earlier Tribunal order in assessee’s own case for assessment years 2005-2006 and 2006-2007. Therefore, it cannot be alleged that there is a failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment. Hon’ble Apex Court in the case of New Delhi Television v. DCIT [2020 (4) TMI 133 - SUPREME COURT] had held that reopening of the assessment beyond four years is bad in law when the tax payer has disclosed the facts at the time of original assessment proceedings and the A.O. did not draw any adverse inference regarding the same. Hon’ble Supreme Court in the case of L & T Limited. [2020 (1) TMI 518 - SUPREME COURT] observed that “there was no element of lack of true and full disclosure on the part of the assessee, which resulted into any income chargeable to tax escaping assessment. The reasons clearly reveal that the Assessing Officer was proceeding on the material which was already on record. In the absence of the statutory requirement of income chargeable to tax have been escaped assessment due to the failure on the part of the assessee to disclose truly and fully all material facts been satisfied, the Tribunal correctly held that the notice of reopening of assessment was invalid”. Hon’ble Karnataka High Court in the case of CIT v. Karnataka Bank [2015 (7) TMI 535 - KARNATAKA HIGH COURT] had held that when there is no case of failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment and further, where the Assessing Authority applied its mind and being satisfied with the claim, allowed the case of the assessee, the Assessing Authority could not have initiated proceedings u/s 147 of the Act, after the end of 4 years.We hold that the reassessment proceedings is bad in law and we quash the same - Decided in favour of assessee.
|