Reopening u/s. 148 based on grossly erroneous factual foundation is untenable-in-law: Madras HC

FIVES India Engineering & Projects Private Limited Vs ITO (Madras High Court) Madras High Court held that reopening of assessment under section 148 of the Income Tax Act based on a grossly erroneous factual foundation and also based on mechanically granted approval is untenable in law. Facts- The petitioner and Fives France under the Assistance Service Agreement between said parties, the petitioner had filed AAR seeking a ruling mainly on the question that whether payments received by Fives France would be subject to withholding tax u/s. 195 of the I-T Act. However, the AAR declined to ans...