Case Law Details
Lionbridge Technologies P. Ltd. Vs ACIT (ITAT Mumbai)
The issue under consideration is whether the re-opening of assessment u/s 147 initiated by AO is justified in law?
In the present case, ITAT state that, it is evident from the records that the re-assessment was made on the basis of the internal audit objection much after the elapse of four years from the end of relevant A.Y. 2008-09 i.e. from 31.03.2009. More so, a plain reading of the reasons for re-opening of assessment under section 148 of the Income Tax Act, 1961 has not pointed out as to how the assessee failed to disclose fully and truly all material facts necessary for his assessment, for that assessment year particularly in view of the following “proviso” of Sec. 147 of the Act. Furthermore, as per the observation it was noted that the fact was not brought to light earlier is not correct since the same has only taken from the return. All the statutory obligation has already been fulfilled by the assessee by submitting all the relevant materials before the authority below. Therefore, there is no failure and/or lapse on the part of the assessee as visualized by proviso under section 147 of the Act. On this score alone the assessment is bad and thus liable to be set-aside.
In the result, the appeal filed by the assessee is allowed.
FULL TEXT OF THE ITAT JUDGEMENT
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