D.A.V. Educational Trust Vs ITO (ITAT Chennai)
ITAT Chennai held that reassessment u/s. 148 of the Income Tax Act after expiry of four years not sustainable since there was no failure on the part of assessee to disclose fully and truly all material facts. Further, reassessment is invalid for non-furnishing of actual reasons recorded.
Facts- The assessee in challenging the action of the ld. CIT(A) in not considering the submissions of the assessee in respect of validity of reassessment order passed under section 147 r.w.s. 144B of the Income Tax Act, 1961 in the facts and circumstances of the case.
Conclusion- A plain reading of first proviso to section 147 of the Act, it is noted that where assessment under sub-section 3 of section 143 of the Act has been made in the relevant assessment year, no action shall be taken under this section after expiry of 4 years from the end of the relevant assessment year unless not disclosed any income chargeable to tax has escaped assessment for the AY by arising failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment for that AY.
Held that since there was no failure on the part of the assessee to disclose fully and truly, the notice dated 31.03.2015 issued by the Assessing Officer under section 148 of the Act after the expiry of four years, is hit by 1st proviso to section 147 of the Act for reopening the original assessment is, in our opinion, barred by limitation.
