Tribunal held that reasons for re-opening did not point out as to how assessee failed to disclose fully and truly all material facts necessary for his assessment. Tribunal also held that internal audit objection had become prime consideration to believe that an income had escaped assessment resulting into reopening of assessment proceeding and not the decision of AO on merit. Accordingly the reassessment was quashed. Tribunal also held that 90 days time period permitted under Rule 34(5) for pronouncing order was to be computed by deducting Covid-19 pandemic lockdown period. (AY. 2008-09)
Lionbridge Technologies (P.) Ltd. v. ACIT (2020) 184 ITD 61 (Mum.)(Trib.)
S. 147 : Reassessment-Internal audit objection-Reimbursement of expenses-Failure to deduct tax at source-Reassessment is held to be not valid-90 days time period permitted under Rule 34(5) for pronouncing order was to be computed by deducting Covid-19 pandemic lockdown period. [S. 40(a)(ia), 148, 195, 255, ITATR. 34(5)]