TMI Blog2012 (9) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... ll material facts necessary for its assessment for the assessment year under consideration. Under the circumstances, the notice having been issued after the expiry of a period of four years from the end of the relevant assessment year, the assumption of jurisdiction u/s 147 by the Assessing Officer is without authority of law - Decided in favor of assessee - 9867 of 2003 - - - Dated:- 12-6-2012 - AKIL KURESHI, HARSHA DEVANI MS., JJ. JUDGMENT Ms. Harsha Devani J.- 1. The petitioner, a private limited company has challenged the notice dated March 21, 2003, issued by the respondent under section 148 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), whereby the assessment of the petitioner for the assessment y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat since the assessee had paid usance interest amounting to Rs. 2,36,20,201 to nonresidents out of the boundaries of India on purchase of ships, it was liable to deduct tax as per the provisions of section 40(a)(i) read with Chapter XVII-B, failing which the interest amount cannot be allowed as deduction in computation of income chargeable under the head "Profits and gains from business or profession". It was submitted that it is the case of the respondent that the assessee has paid usance interest on purchase of ships and has not complied with the provisions of section 40(a)(i) read with Chapter XVII-B of the Act and as such, the deduction has been allowed to the assessee which is contrary to law. According to the learned counsel, the mai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice issued under section 142(1) of the Act or section 148 of the Act ; or (iii) to disclose fully and truly all material facts necessary for assessment of the relevant assessment year, no action can be taken by the Assessing Officer. In the present case admittedly, the first two contingencies do not exist. Therefore, the only ground on which the Assessing Officer can reopen the assessment in the present case is if there is any failure on the part of the petitioner to disclose fully and truly all material facts necessary for its assessment. In this regard, a perusal of the reasons recorded shows that there is not even a whisper therein to the effect that there is any failure on the part of the petitioner to disclose fully and truly all mate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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