Case Law Details
DCIT Vs Gujarat State Road Development Corporation Ltd (ITAT Ahmedabad)
ITAT Ahmedabad held that reopening of assessment under section 147 of the Income Tax Act is unsustainable as prerequisite laid down in law for reopening of the case beyond four years is not found to be fulfilled.
Facts- The reopening had been resorted to by an order passed in terms of provision of section 147 of the Act on an identical issue. The addition so made by the AO had been challenged before the ld.CIT(A) both on legal ground challenging validity of the assessment framed ,as well as on merits of the additions made; that the ld.CIT(A) while deleting the addition made on merits found no merit in the legal ground raised by the assessee. Against this order of the ld.CIT(A), the Revenue has filed appeal challenging deletion of addition on merits by the ld.CIT(A) while the assessee has come in cross-objection raising legal ground before us.
Conclusion- The material fact in this case is the incurrence of expenditure, which the assessee has clearly disclosed. The assessee has also clearly disclosed all facts relating to the government grants received and also its treatment. Moreover, as rightly pointed out by the ld.counsel for the assessee, it is not even the case of the AO that the assessee had failed to disclose truly and fully all material facts relating to incurrence of expenditure, claimed as revenue by the assessee.
Held that prerequisite laid down in law for reopening of the case beyond four years is not found to be fulfilled in the present case. The reopening by the AO therefore, we hold, in both the cases is without jurisdiction; the assessment orders, therefore, passed as a consequence are invalid and directed to be set aside.
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