Dalmia Cement (Bharat) Limited Vs (ACIT) (Madras High Court)
Madras High Court held that reopening of assessment under section 148 of the Income Tax Act not sustainable since assessee has fully and truly disclosed all the material facts. Accordingly, order along with notices are liable to be set aside.
Facts- The present writ petition is filed under Article 226 of the Constitution of India praying to quash impugned notices issued under Section 148 of the Income Tax Act. The petitioner contested that he has submitted all the necessary details in Form-2 with all other attachments including the reply given to the notice issued u/s. 142. Against the order passed by the Assessing Authority, the petitioner also filed an appeal to the Commissioner of Income Tax, in which, all these points were elaborately discussed and thereafter, the order charging tax u/s. 139 was set aside and the appeal was partly allowed and consequent upon the order, it was given effect to by the other consequential order under Section 250/154/153A/143(3) of the Income Tax Act, 1961. In those circumstances, it should be construed that the petitioner has given all the materials fully and truly. As per the explanation to Section 147, if at all the Assessing Officer with his due diligence discovers that there is some escaped assessment, then, on the basis of that, he can initiate proceedings. But the impugned orders do not disclose the main reasons given by the Assessing Authority and the same also do not disclose any escaped assessment. Further, the assessment order for 2011-2012, ended with 31.03.2012. As per Section 147, proceedings, if any, should have been commenced within four years from the date of end of the assessment year. But, in the instant case, the proceedings were initiated on 31.03.2018. Therefore, it is barred by limitation.
