Pfizer Limited Vs DCIT (Bombay High Court)
Bombay High Court held that initiation of reassessment proceedings under section 147 of the Income Tax Act resulting into change of opinion and review of the assessment order is not permissible in law. Accordingly, reassessment proceedings are liable to be quashed.
Facts- This petition challenges notice under Section 148 of the Income-tax Act, 1961 dated 29 March 2016 for the Assessment Year (AY) 2009–10 seeking to reopen the assessment made on 18 April 2013 under Section 143 of the Act. This petition was admitted on 20 December 2016, and the impugned notice dated 29th March 2016 was stayed till final disposal of the petition.
Conclusion- The reasons recorded also admits that the issue was examined during the course of the assessment proceedings and 1/3rd of the promotional expenses were disallowed and the balance expenses were allowed. If this is an admitted position as per the reasons recorded, then we fail to understand how the pre- condition of failure to disclose fully and truly all material facts necessary for the assessment can at all be satisfied. If at all, there is a failure, it was on the part of the assessing officer to have not disallowed the entire expenditure and not the failure on the part of the petitioner-assessee. Therefore, in our view, the pre-condition required by first proviso to Section 147 of the Act based on the admission made in the reasons for reopening are not satisfied and therefore on this short ground itself, the impugned notice dated 29 March 2016 is required to be quashed and set aside.
