Delhi High Court held In the case of Consultating Engineering Services (India) Ltd. vs. DCIT that for reassessment as per first proviso of section 147, it is pre- condition that the assessee has not made a full and true disclosure of the material particulars necessary for the assessment. Accordingly, in the given case, the revenue cannot be permitted to reopen the assessment as the necessary pre-condition for doing so in a case which is beyond four years from the end of the relevant assessment year has not been fulfilled.
Facts of the Case
The assessment of the assessee was completed under section 143(3) on 15.12.2010.The assessing officer made certain additions on account of section 40(a)(ia) of Rs.1,55,94,534 under section 14A of Rs. Rs.1,55,603 and on account of extra depreciation claimed on computer peripherals Rs. 6,87,043.The notice under section 148 was issued on 21.03.2013, beyond four years from the end of the relevant Assessment Year. The reasons for the same given by the revenue were that the assessee had escaped the income and failed to disclose the true particulars of its income. The reasons of reopening of assessment were as follows:
- The assessee has claimed interest expenses of Rs. 25,07,124/- on terms loans in the P&L a/c. Further, the assessee has shown capital work in progress (CWIP) at Rs. 2,83,56,670/- for the period under consideration. However, the interest capitalized against the same has been shown at NIL. Also similar claim of the assessee regarding the interest expenses has been disallowed by the AO amounting to Rs. 24,73,568/- for AY 2009-10.
- On perusal of notes to a/c of the assessee, it has been reported by the auditors that the assessee has booked the professional fees less than the Job in progress brought forward from the last year on their ultimate completion by Rs. 3,21,21,550.
Held by High Court
