Re-assessment u/s 147 of Income Tax Act After Expiry of Four years from End of Relevant Year of Assessment is Invalid: ITAT [Read Order]

The New Delhi bench of the Income Tax Appellate Tribunal (ITAT) held that the reopening of assessment under section 147 of the Income Tax Act,1961 after the expiry of four years from the end of the relevant year of assessment was invalid. 

Jaguar and Company Pvt Ltd, the appellant assessee appealed against the order passed by the Commissioner of Income Tax (Appeals) for confirming the re-assessment proceedings made by the assessing officer after the expiry of four years from the end of the relevant assessment year. 

Rakesh Gupta and Deepesh Garg, the counsels for the assessee contended that by merely adding a line in the reasons recorded that the petitioner had failed to disclose fully and truly all material facts the requirement of the proviso to section 147 of the Income Tax Act would not be satisfied. 

It was further submitted that the impugned notice under section 148 of the Income Tax Act seeking to reopen the assessment under section 147 of the Income Tax Act cannot be sustained due to the expiry of the period and are liable to be deleted. 

Bhopal Singh, the counsel for the revenue relied on the decisions made by the lower authorities and contended that there was a failure on the part of the assessee to fully and truly disclose all material facts which were necessary for the re-opening of assessment proceedings under section 147 of the Income Tax Act. 

The bench observed that the assessment of jurisdiction on the part of the assessing officer under section 147 of the Income Tax Act after the expiry of a period of four years from the end of the relevant assessment year was invalid. 

The two-member bench comprising N.K. Billaiya (Accountant) and Anubhav Sharma (Judicial) held that merely adding a line in the reasons recorded by the assessing officer was not sufficient to re-open the assessment proceeding under section 147 of the Income Tax Act while allowing the appeal filed by the assessee. 

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