Oxford University Press Vs DCIT (Bombay High Court)
Bombay High Court quashed the income tax reassessment proceedings initiated against Oxford University Press (OUP) for the assessment year 2014-15. The reassessment notice was issued under Section 148 of the Income Tax Act, 1961, beyond the four-year limitation period. The court ruled that the conditions for reopening the assessment were not met, as there was no failure on the part of OUP to fully and truly disclose material facts. The department had sought to reassess OUP based on a later classification as a “non-resident” entity for assessment year 2016-17, but the court found this reasoning insufficient.
The reassessment notice, issued on March 25, 2021, was based on the claim that OUP had been incorrectly assessed as a “resident” entity for 2014-15, leading to a lower tax rate of 30% instead of 40%, applicable to foreign companies. However, OUP had consistently been assessed as a “resident” since 1995-96, as agreed upon with the tax authorities to avoid litigation. The court observed that there was no fresh material to suggest that OUP had failed to disclose relevant information at the time of the original assessment. Consequently, the jurisdictional requirement for reassessment beyond four years was not satisfied.
