Eurofins Peenya Resources Private Limited Vs DCIT (ITAT Bangalore)
ITAT Bangalore held that reopening of assessment under section 148 after expiry of four years without failure on part of assessee to disclose fully and truly all material facts is invalid and hence liable to be quashed.
Facts- The case of assessee was reopened u/s. 147 of the Act by issue of notice u/s. 148 on 31.3.2021. The main reason for reopening of the assessment is that the International Taxation Officer forwarded information that assessee has made payment of Rs.49,17,872 during the AY 2013-14 to a non-resident service provider vendor on account of annual maintenance contract (AMC) and maintenance charges without making tax deduction at source. As these payments are in the nature of fees for technical services, provisions of section 40(a)(i) is applicable in this case. Therefore, on corelation of these details with records of assessee, the AO formed a reason to believe that an amount of Rs.49,17,872 paid without tax deduction at source to a non-resident is wilful act of the assessee to reduce the taxable income. Thus, this amount has escaped assessment within the meaning of section 147 of the Act.
CIT(A) confirmed the action of AO and dismissed the appeal. Being aggrieved, the present appeal is filed.
