Brief of the case:
In this case reopening u/s 148 was challenged by way of writ on the ground that assessment was reopened after the expiry of four years and reason recorded did not indicate any material which the petitioner has not fully and truly disclosed in the assessment proceedings. Also it was ground of the assessee that there was no application of mind and assessment was reopened on the basis of mere change of mind. It was requested to quash the notice u/s 148. Hon’ble HC after considering the facts and various case relied upon have allowed the writ petition.
Facts of the case:
- AO had passed an order dated 27-01- 2003 under Section 143(3) of the Act by which the total income was determined at Rs.2,56,02,060/- after making certain dis-allowances.
- One of the partial disallowances was a deduction under section 33AC of the Act which was claimed by the petitioner on the ground that the petitioner is engaged in the business of ‘Operation of Ships.’
- On this count the petitioner had inter alia claimed a deduction of Rs.2,15,94,598/- however the Assessing officer allowed the same to an extent of Rs.1,82,28,205/-.
- It is an admitted position that the notice in question issued under section 148 of the Act is issued by the Assessing Officer after expiry of a period of four years from the end of the relevant assessment year.
- AO assumed that deduction u/s 33AC was wrongly granted to the assessee.
- Assessee filed its objection against reopening of the case but same was rejected by AO after receiving a letter from the office of CIT (A) in which claim of deduction was rejected by CIT (A).
Contention of the revenue:
Paid content
Become a Basic or Premium Member, or log in if you are already a Basic or Premium member.
