Nvidia Graphics Pvt. Ltd. Vs ACIT (ITAT Bangalore)
ITAT Bangalore held that when the reasons supplied to the assessee and the reasons supplied before higher forum is not verbatim same, it cannot sustain the validity of reopening of assessment under section 147 of the Income Tax Act. Accordingly, reassessment order was quashed.
Facts- Post completion of assessment u/s. 143(3), reassessment u/s. 148 was initiated. The reason for issuance of notice under section 148 of the Act was to bring to tax value of the free assets received by the assessee from its parent company by invoking the provisions of section 28(iv) of the Act. The objections of the assessee to the said addition under 28(iv) of the Act.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed by the assessee.
Conclusion- Since the case relates to Assessment Year 2014-15 and the notice has been issued by the AO on 31.03.2021, we observe from the notice that necessary ingredients, which were required to be mentioned for reopening beyond the period of 4 years, has not been mentioned. Accordingly, we hold that the reasons recorded by the AO for exercising jurisdiction under section 147 of the Act is not in conformity with the provisions of Section 147 of the Act.
