S. 147 : Reassessment-After the expiry of four years-Loans and advances to sister concern-Allegation of colourable device-No failure to disclose material facts-Notice of reassessment and order disposing objection was quashed. [S. 69, 148, Art. 226]
The original assessment was completed under section 143(3) of the Act. The reassessment notice was issued on 30-3-2021, on the ground that the advance payment of Rs.17,76,08,505 remained unexplained. The assessee filed the objection for reassessment notice and recorded reasons stating that there was no failure to disclose material facts. The AO passed the order rejecting the objections of the assessee. The assessee filed writ before the High Court. Allowing the petition the Court held that the Assessing Officer has not established that there was a failure on the part of the assessee to disclose all material facts. The Assessing Officer has no power to review. On the facts there is neither a new information received nor has reference been made to any new material on record. Accordingly the notice under section 148 of the Act and all connected proceedings are quashed. Followed CIT v. Kelvinator of India Ltd. (2010) 320 ITR 561 (SC), Jindal Photo Films v. Dy. CIT (1998) 234 ITR 170 (Delhi)(HC). (WP No. 2840 of 2022 dt.10-2-2023) (AY. 2015-16)
Konark Life Spaces v. ACIT (Bom.)(HC) www.itatonline.org
[Coram : Hon’ble Shri Justice Dhiraj Singh Thakur and Hon’ble Shri Justice Kamal Khata]