Prabhu Spinning Mills Private Limited Vs JCIT (Madras High Court)
Madras High Court held that re-opening u/s. 148 read with section 147 of the Income Tax Act not sustained as there is no failure on the part of assessee to fully and truly disclosure all the material facts. Thus, notice and order quashed.
Facts- The petitioner has challenged the impugned notice dated 28.03.2021 issued under Section 148 of the Income Tax Act for the assessment year 2013-14. The petitioner has also challenged the consequential speaking order dated 29.07.2021, overruling the objection of the petitioner against re- opening the assessment that was completed under Section 143(3) of the Income Tax Act on 29.06.2015.
Conclusion- Held that unless there was a failure on the part of the petitioner to fully and truly disclosure all material facts necessary for completing the assessment, the invocation of the machinery under Section 148 read with 147 was not available. Thus, the impugned notice and speaking order are liable to be quashed.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The petitioner has challenged the impugned notice dated 28.03.2021 issued under Section 148 of the Income Tax Act for the assessment year 2013-14. The petitioner has also challenged the consequential speaking order dated 29.07.2021, overruling the objection of the petitioner against re- opening the assessment that was completed under Section 143(3) of the Income Tax Act on 29.06.2015.
