If there is no failure to disclose fully and truly all material facts necessary for the purpose of the assessment, then the reopening of the assessment beyond four years from the end of the relevant assessment year is unsustainable

Nihilent Technologies Private Limited Vs DCIT & Anr. (Mumbai High Court)- A division bench of the Bombay high court has quashed the reopening of the income tax assessment of Nihilent Technologies Ltd after four years. The software company had shares held by Hatch Investments (Mauritius) Ltd. The shareholding was reduced from 99.85 percent to 76.63 percent. The assessment for 2003-04 was completed in 2006 wherein the carried forward loss incurred by the firm in the assessment year 2001-02 was allowed to be set off. Last year the assessment was sought to be reopened on the ground that the s...