Case Law Details
DCIT Vs Santha Build Tech India Pvt. Ltd. (ITAT Chennai)
ITAT Chennai held that reopening after expiry of 4 years, without establishing any failure on part of the assessee to disclose any material facts necessary for its assessment, is bad-in-law and liable to be quashed.
Facts- The assessee is engaged in the business of construction of residential buildings. The assessee’s case was selected for scrutiny assessment and the assessment was completed u/s. 143(3) of the Act vide order dated 31.03.2016. Subsequently, assessment framed was reopened u/s.147 of the Act by issuing notice u/s.148 of the Act dated 04.09.2019. AO recorded reason for issuing notice u/s.148 of the Act that the assessee has not deducted TDS u/s.194A of the Act on interest payment made by the assessee to the extent of Rs.1,43,15,144/- to Reliance Home Finance Pvt. Ltd. Consequently, the AO completed reassessment and passed order u/s.143(3) r.w.s. 147 of the Act dated 27.09.2021.
CIT(A) held that assessment reopened u/s. 147 r.w.s 148 of the Act is bad in law. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that as the AO has not recorded in its reasons for reopening of assessment that there is any failure on the part of the assessee to disclose any material fact necessary for completion of assessment in the relevant assessment year, despite the fact that original assessment was completed u/s.143(3) of the Act and time period of 4 years has expired from the end of the assessment year before reopening of assessment u/s.147 r.w.s. 148 of the Act, we find no infirmity in the order of CIT(A) quashing the reopening.
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