Case Law Details
Ananta Landmark Pvt. Ltd. Vs DCIT (Bombay High C0urt)
Conclusion: Assessment was sought to be reopened not on account of failure of assessee to disclose truly and fully all material facts that were necessary for computation of income but on account of change of opinion of AO about the manner of computation of the deduction under Section 57, therefore, the same was invalid.
Held: In the instant case, assessee had truly and fully disclosed all material facts necessary for the purpose of assessment. Not only material facts were disclosed by assessee truly and fully but they were carefully scrutinized and figures of income as well as deduction were reworked carefully by AO. In the reasons for reopening, AO had infact relied upon the audited accounts to say that the claim of deduction under Section 57 was not correct, the figures mentioned in the reason for reopening of assessment were also found in the audited accounts of assessee. In the reasons for reopening, there was not even a whisper as to what was not disclosed. In the order rejecting the objections, AO admitted that all details were fully disclosed. This was not a case where assessment was sought to be reopened on the reasonable belief that income had escaped assessment on account of failure of assessee to disclose truly and fully all material facts that were necessary for computation of income but this was a case wherein the assessment was sought to be reopened on account of change of opinion of AO about the manner of computation of the deduction under Section 57 of the Act.
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