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The Tax PublishersITA No. 9542/Del/2019
2021 TaxPub(DT) 2161 (Del-Trib)INCOME TAX ACT, 1961
Section 147
In the reasons recorded for reopening, AO had not mentioned anything with regard to failure on the part of the assessee to disclose all the material facts. Accordingly reopening beyond four years was hit by proviso to section 147 and was, therefore, set aside.
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Reassessment - Beyond four years - No failure to disclose fully and truly all material facts -
AO received information from investigation wing as to assessee having received bogus entries. Accordingly, AO reopened assessment after expiry of four years from the end of relevant assessment year and made addition. Held: Section 147 mandates that the case can only be reopened after expiry of four years only if there was a failure on the part of the assessee to fully and truly disclose all material facts necessary. Assessee had disclosed the fact of receipt of Rs. 60,00,000 towards the share capital in the regular return filed which had been scrutinized under section 143(3). In the reasons recorded for reopening, AO had not mentioned anything with regard to failure on the part of the assessee to disclose all the material facts. Accordingly reopening beyond four years was hit by proviso to section 147 and was, therefore, set aside.
Followed:New Delhi Television Ltd. v. Dy. CIT 2020 TaxPub(DT) 1703 (SC), Haryana Acrylic Manufacturing Company v. CIT (2008) 308 ITR 38 (Del) : 2009 TaxPub(DT) 1007 (Del-HC), RMP Holding (P) Ltd. v. ITO 2020 TaxPub(DT) 4761 (Del-Trib)
REFERRED :
FAVOUR : In assessee's favor.
A.Y. :
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