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S. 147: Retrospective amendment does not mean failure to disclose material facts
After the expiry of four years from the end of the assessment year, the AO reopened the assessment u/s 147 by relying on the retrospective amendment to s. 80HHC by the Taxation Laws (Amendment) Act, 2005 w.e.f. 1.4.1998. The CIT (A) and Tribunal (included in file) struck down the reopening. On appeal by the department, HELD dismissing the appeal:
The assessment was sought to be reopened on account of retrospective amendment to s. 80HHC introduced by the Taxation Laws Amendment Act, 2005 with effect from 1st April 1998. If the legislature amends the provisions of the Act with retrospective effect, it cannot be said that there was failure on the part of the assessee to disclose fully and truly all material facts relevant for the purpose of assessment.
Related Judgements
- CIT vs. Earnest Exports (Bombay High Court)
The power u/s 254(2) is confined to a rectification of a mistake apparent on record. S. 254(2) is not a carte blanche for the Tribunal to change its own view by substituting a view which it believes should have been taken in the first instance. S. 254(2) is not…
- CIT vs. Baer Shoes (Madras High Court)
The assessee had claimed deduction u/s 80HHC after a full disclosure of the material facts. As four years had elapsed from the end of the assessment year, the assessment could not be reopened in the absence of failure to disclose the material facts. The judgment of the Supreme Court…
- Great Eastern Exports vs. CIT (Delhi High Court)
Applying the test of literal construction, s. 80-IA (9) provides for two things (a) once an assessee is allowed deduction u/s 80 IA, “to the extent of such profits and gains” he is not to be allowed further deductions under Chapter-C and (b) in no case the deduction shall…
January 21st, 2012 at 4:43 am
[...] For more on s. 147 & retrospective amendments see CIT vs. K. Mohan (Bom) & CIT vs. Baer Shoes [...]