Admitting the petition the Court held that ; Revenue has not able to show that the assessee has claimed discount on sales as expenditure accordingly the stay was granted in terms of prayer (d) of the petition . Court also observed that we may point out that we do not accept the Petitioner’s contention as urged in the objection and in the Petition, that because an earlier reopening notice dated 19 March 2015 under Section 148 of the Act is pending, the Revenue is barred from issuing the impugned notice. We also clarify that in the reassessment proceedings consequent to the reopening notice dated 19 March 2015, would not in any manner be fettered by virtue of this admission. The AO is free to examine all issues in terms of Explanation III to S. 147 of the Act.( AY. 2010-11)
Novartis India Ltd. v CIT (2018) 165 DTR 198 (Bom) (HC)
S.147: Reassessment— After the expiry of four years- Failure to disclose material facts—Failure to deduct tax at source –Discount on sales – Revenue has not able to show that the assessee has claimed discount on sales as expenditure ,therefore Stay was granted in terms of prayer (d) of the petition . Court also observed that the AO is free to examine all issues in terms of Explanation III to S. 147 of the Act. [ S.148 ]