Reopening of assessment before disposing of objections filed by assessee is unsustainable

General Electric Company Vs ADIT (ITAT Mumbai)

ITAT Mumbai held that reopening of assessment prior to disposing of the objections filed by the assessee is unsustainable and bad-in-law.

Facts- General Electric Company is a company incorporated in the United States of America (USA). The assessee filed its return of income for the assessment year under consideration on 29 October 2001 declaring the total income of Rs.3,07,33,0901- as Royalty/Fee for technical services and income from other sources.

The assessment proceedings was completed u/s. 143(3) of the Act wherein the returned income was accepted without making any additions / disallowances. A survey was conducted at General Electric International Operations Company Inc’s (GEIOC) premises located at New Delhi.

Thereafter, notice dated 31 March 2008 u/s. 143 of the Act was issued to the assessee to file return of income by the office of the Assistant Director of Income-tax, International Taxation, Range (1) Mumbai (AO) In response to the same, the assessee vide letter dated 29 May 2008 requested the learned AO to treat the return already filed under section 139 of the Act as turn filed in compliance to the said notice.

Please become a Premium member. If you are already a Premium member, login here to access the full content.