2012 (1) TMI 348

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..... ORDER Per N.R.S. Ganesan (JM) This appeal of the revenue is directed against the order of Commissioner of Income-tax(A)-IV, Kochi dated 11-02-2009 and pertains to assessment year 2002-03. The assessee has filed the cross objection against the very same order of the CIT(A). Therefore, both the appeal of the revenue and the cross objection by the assessee are disposed of by this common order. .....

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..... epresentative, the case was reopened on the basis of the Apex Court judgment in Ravindran Nair vs Commissioner of Income-tax 295 ITR 228 (SC) to exclude 90% of the gross processing charges. According to the ld.representative, the assessee has furnished all the details for completing the assessment. There was no failure on the part of the assessee. The subsequent judgment of the Apex Court holding .....

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..... annot be said that there was no negligence on the part of the assessee in disclosing the true material facts for completion of the assessment. Referring to Explanation 1 to section 147, the ld.representative submitted that mere production of accounts or other evidence from which the assessing officer could have discovered the necessary information would not necessarily amount to disclosure within .....

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..... available on record. The assessing officer can very well ascertain the gross processing charges from the material available on record. Merely because the judgment of the Apex Court in the case of C.I.T. vs K Ravindran Nair (supra) requires the asseessee to deduct gross processing charges, the assessing officer reopened the assessment. The question remains is that whether there was a negligence on .....

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..... ore, in view of Proviso to section 147, the reopening of assessment after four years is invalid in law. Accordingly we hold that the reopening of assessment is invalid. Consequently the reassessment proceedings has no leg to stand. Accordingly we uphold the order of Commissioner of Income-tax(A) for the reasons stated above. 6. In view o the above, it is not necessary for the Tribunal to go into .....

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