Reopening of completed assessments not justified in the event of true & full disclosure by assessee

Brief of the case:

The Hon’ble Delhi High Court in the case of HCL Technologies Ltd. held that completed cannot be reopened after the expiry of four years from the end of relevant assessment year unless the income escaped from tax is attributable to assessee’s failure to disclose full & true disclosure of the facts.

Facts of the case:

• The scrutiny assessment was completed under Sec 143(3) read with Sec 144C (13) on 28.10.2010. In the order of the said assessment the software license fee claimed by the assessee was allowed only to the extent of 25% (i.e. 25 % of 31.69 crores) and the remaining 75% was treated as capital assets capitalized under the block of computers on which 60% depreciation allowable. The assessee’s appeal was already pending before the ITAT challenging the original assessment order.

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