ACIT Vs City Union Bank Limited (Madras High Court)
Madras High Court held that reassessment under section 147 of the Income Tax Act after expiry of four years is sustainable in law since assessee has failed to set out truly and fully all the material facts.
Facts-The Writ Petitioner, City Union Bank Limited at Kumbakonam/assessee is a banking company. The respondents, the Assistant Commissioner of Income Tax, Circle 2(1), Tiruchirapalli, Income Tax Office and the Chief Commissioner of Income Tax, Tirchirapalli, in W.P.(MD)No.24160 of 2018 have filed the present Writ Appeal, aggrieved by the order dated 18.11.2019, by which order, the single Judge had allowed the Writ Petition and quashed the impugned proceeding dated 08.11.2018 and impugned notice dated 09.03.2018 issued by the first appellant under Section 148 read with Section 147 of “the Income Tax Act, 1961” for the assessment year 2011-2012, admitting a total income of Rs.190,30, 75,570/-.
Conclusion- Section 147 of the Act is quite comprehensive and the proviso which stipulates that no action shall be taken after the expiry of four years also has an exception clause viz., if there is income chargeable to tax and had escaped assessment for such assessment year, then action can be taken even after the expiry of those four years.
