The Tax Publishers2021 TaxPub(DT) 0177 (Mad-HC)

INCOME TAX ACT, 1961

Section 147

Where assessee was challenging reopening of assessment under section 147 or on account of disallowance under section 40(a)(ia) for failure to deduct tax at source, considering fact that after filing of writ petition, there was amendment to section 40(a)(ia) and Supreme Court in case of Calcutta Export Company held that the said amendment would have retrospective applicability from the date of its insertion with effect from the assessment year 2005-06 in order to remove the unintended consequences which were causing grave and genuine hardships to the assessees, matter was remanded back to revenue for reconsideration of assessee's case.

Reassessment - Reopening of assessment under section 147 or on account of disallowance under secti on 40(a)(ia) - Remand of matter to consider judagment of Supreme Court in case of Calcutta Export Company -

Assessee was challenging reopening of assessment under section 147 opened on account of disallowance under section 40(a)(ia) for failure to deduct tax at source. Revenue alleged that assessee did not disclose freight receipts from exporters and net freight payment made which was covered under section 194C as payment to a sub-contractor. It was claimed by assessee that the payment was received on behalf of others. Held: After filing of writ petition, there was amendment to section 40(a)(ia) and Supreme Court in case of Calcutta Export Company held that the said amendment would have retrospective applicability from the date of its insertion with effect from the assessment year 2005-2006 in order to remove the unintended consequences which were causing grave and genuine hardships to the assessees. Considering peculiar features of assessee's case, it shall be incumbent upon revenue to afford opportunity of personal hearing to assessee and thereupon, revenue shall deal with each of the contentions raised by the assessee, uninfluenced and uninhibited by the earlier views.

Relied:CIT v. Calcutta Export Company (2018) 16 SCC 686 : 2018 TaxPub(DT) 2136 (SC).

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2005-06



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