Case Law Details
CIT Vs Sterling Tree Magnum India Ltd. (Madras High Court)
Learned Tribunal has categorically held that there was no failure on the part of the assessee, but disclosed the relevant facts and therefore, merely on the basis of the audit objection or change of opinion and re-assessment under Sections 147 & 148 of the Income Tax Act, 1961, could not be made beyond the period of four years from the end of the relevant assessment year 1997-98.
In the present case, the notice under Section 148 of the Income Tax Act, 1961, was issued on 26.03.2004, as per the assessment order much beyond the period of four years from the end of relevant AY 1997-98. Therefore, in our opinion, the learned Tribunal was justified in annulling the re-assessment order of the AY 1997-98 on the ground of same being barred by limitation as per proviso to Section 147 of the Income Tax Act, 1961. The position of law in this regard being already settled by a catena of judgments of the Hon’ble Supreme Court as well as this Court, we do not find any substantial question of law to be arisen in the present appeal filed by the Revenue and therefore, the Tax Case (Appeal) filed by the Revenue is bound to be dismissed and accordingly, the same is dismissed.
FULL TEXT OF THE HIGH COURT ORDER/JUDGEMENT
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