TMI Blog2015 (10) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... d since after the survey conducted on 5.11.2009, it was found that the agreement was not genuine, it would amount to failure on the part of the assessee to disclose fully and truly all material facts and thus the notice could have been issued beyond the period of four years under the first proviso to Section 147 of the Act. In our opinion, since such reason has not even been specified in the reasons recorded in the notice or in the assessment order itself, the notice issued beyond the period of four years has rightly been held to be invalid by the learned Tribunal. The Tribunal has rightly relied on the decision of this Court in the case of Hewelett Packard Digital Global Soft Ltd., (2011 (9) TMI 800 - Karnataka High Court ) and as such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vey, along with other issues, expenses debited to the P L A/c were verified and it was found that the assessee has incurred huge expenses in the nature of Info Trakking and Delivery schedule which is paid to foreign companies (M/s South Elegant Limited and others) as per the Service Agreement entered in to between the assessee company and M/s South Elegant Limited dated 1.7.2002. During the course of post survey proceedings statement of the Managing Director of the company Shri Anupam Kothari was recorded and was asked to substantiate this agreement and payments made in pursuance to this agreement and it is found that the reply of the Managing Director to most of the queries were evasive in nature and surprisingly, to quote a few, he coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been paid to foreign company/s along with other. As the issue of payment of commission sales was not examined during the course of assessment proceedings for A.Y. 2004-05 as also this issue has come to light on account of survey u/s 133A, I have reason to believe that income chargeable to tax has escaped assessment within the meaning of section 147 of the Income-tax Act, 1961. 3. The reassessment order under Section 143(3) of the Act read with Section 147 of the Act was completed by the Assessing Officer on 27.12.2010. Challenging the said order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals), which was dismissed on 1.8.2014. Aggrieved by the same, the assessee filed further appeal before the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r assessment of income of the assessee for the relevant assessment year, hence reopening of the assessment itself is invalid. 7. Having gone through the reasons recorded for issuing notice, as well as the assessment order dated 27.12.2010, we do not find that there is any finding recorded to the effect that the assessee failed to disclose fully and truly all material facts necessary for the relevant assessment year. The submission of the learned counsel for the appellant is that certain deductions had been claimed on the basis of an agreement under which commission was paid by the assessee and since after the survey conducted on 5.11.2009, it was found that the agreement was not genuine, it would amount to failure on the part of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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