2025 (3) TMI 1008

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..... r section 148 of the Income -tax Act, 1961 (the Act) dated 30 March 2021 for the assessment year 2013-14. 4. The petitioner filed its return of income on 30 November 2013. The said return was selected for scrutiny assessment and the petitioner in the course of the assessment proceedings, pursuant to various queries raised by the assessing officer, filed various details, including the details on which the impugned proceedings are initiated. 5. On 22 February 2017, an assessment order under section 143 (3) of the Act was passed disallowing certain percentage of expenses on samples given to doctors on the ground that same constitutes sale promotion expenses incurred on the doctor. The said order is a subject matter of an appeal. We are infor .....

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..... nless there is a failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment. Therefore, the precondition for reopening the case after the expiry of four years is that there has to be a failure to disclose fully and truly all material facts necessary for the assessment. It is also well settled that whether such failure is there or not has to be seen based on the reasons as recorded which we have reproduced above. 11. On a perusal of the reasons reproduced above, it cannot be said that there was any failure on the part of the petitioner to disclose fully and truly all material facts necessary for the assessment. In paragraph 2 of the reasons, it is stated that the assessee has debited an a .....

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..... true disclosure has not been made by the petitioner. On a query being raised by the Court to the revenue as to what are the requisite full and true disclosure of material facts which the petitioner has not disclosed, the learned counsel for the revenue relied upon the reasons as recorded. On a perusal of the reasons as recorded, we do not find any statement which states as to what are the requisites full and true disclosure of the material facts which have not been disclosed. On the contrary, the officer in the reasons recorded has admitted that the issue for which the reopening is sought has either been disclosed in the Profit & Loss account or in the balance-sheet. The reasons further admits that the issue with respect to sale promotion .....

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