Case Law Details
TCG Development India Private Limited Vs ITO (ITAT Delhi)
The issue under consideration is whether the notice issued under section 147 for re-opening of assessment is justified in law?
ITAT states that from the material available on record it is evident that during the course of original assessment proceedings, on the issue of allowability, the assessee had disclosed the information to the AO and thus it would appear that assessee had disclosed the primary facts at its disposal to the Assessing Officer for the purpose of assessment. In such circumstances, it cannot be said that assessee did not disclose fully and truly all material facts necessary for the assessment. Consequently, the AO could not have arrived at the satisfaction that he had reasons to believe that income chargeable to tax had escaped assessment. In the absence of the same, the AO could not have assumed jurisdiction and issued the impugned notice under section 148 of the Act. Further, even on the reading of the reasons recorded, it cannot be said that it suggests about any failure on the part of the assessee to disclose truly and fully all material facts necessary for assessment. A claim which has been allowed in the original assessment proceedings after examination of the relevant details and facts cannot be amenable to provisions of Section 147/148 of the Act. Considering the totality of the aforesaid facts, ITAT are of the view that in the present case, notice for re-opening of the assessment u/s 147 of the Act is not as per the mandate of Sec.147 of the Act and therefore the re-opening is not permissible. ITAT are therefore of the view that the notice issued for re-opening has to be set aside and the same deserves to be quashed.
FULL TEXT OF THE ITAT JUDGEMENT
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