Reassessment notice was issued after expiry of four years from the relevant assessment year on the basis of information received from DDIT. On writ allowing the petition the Court held that there was no failure to disclose material facts. Relying on the information from DDIT is borrowed satisfaction. Documents of report relied on must be furnished along with recorded reasons was not furnished. Principle of natural justice violated as Judgements relied on without bringing notice to the assessee. Reasons cannot be improved or supplemented. Reassessment notice was quashed. Relied on First Source Solutions Ltd. v. ACIT (2021) 438 ITR 139 (Bom)(HC), Sabh Infrastructure Ltd v. ACIT (2017) 398 ITR 198 (Delhi)(HC). (AY. 2012-13)
Patel Engineering Ltd. v. Dy. CIT (2022) 210 CTR 185 (Bom.)(HC)
S. 147 : Reassessment-After the expiry of four years-Survey-No failure to disclose material facts-Information from DDIT-Borrowed satisfaction-Documents of report relied on must be furnished along with recorded reasons-Principle of natural justice-Judgements relied on without bringing notice to the assessee-Reasons cannot be improved or supplemented-Reassessment notice was quashed [S. 133A, 148, Art. 226]