April 2022
Reassessment — Notice u/s 148 after four years — Condition precedent — Failure by assessee to disclose material facts necessary for assessment — Notice not stating which fact had not been disclosed — Mere statement that there had been failure to disclose material facts is not sufficient — All documents and details submitted by assessee during original assessment and examined by TPO and original order passed by AO thereafter — No failure on part of assessee to disclose material facts fully and truly — Notice and reassessment on change of opinion — Impermissible
By K. B. Bhujle, Advocate
Reading Time 3 mins
6 Skoda Auto Volkswagen India Pvt. Ltd. vs. ACIT
[2022] 441 ITR 74 (Bom)
A.Y.: 2004-05; Date of order: 4th December, 2021
Ss. 92CA(3), 143(3), 147, 148 of ITA, 1961
Reassessment — Notice u/s 148 after four years — Condition precedent — Failure by assessee to disclose material facts necessary for assessment — Notice not stating which fact had not been disclosed — Mere statement that there had been failure to disclose material facts is not sufficient — All documents and details submitted by assessee during original assessment and examined by TPO and original order passed by AO thereafter — No failure on part of assessee to disclose material facts fully and truly — Notice and reassessment on change of opinion — ImpermissibleFor the A.Y. 2004-05, the Assessing Officer issued a notice u/s 148 of the Income-tax Act, 1961 after four years for reopening the assessment u/s 147. The reasons recorded stated that on verification of the records it was found that the assessee had capitalized an amount paid towards lump sum payment of technical know-how fees and claimed depreciation but had calculated the operating loss considering the actual payment of technical know-how fees instead of only the depreciation as claimed by the assessee, that therefore, the working profit calculated by the assessee was not correct and that the arm’s length price calculated was short by Rs. 116.20 crores and hence such amount had escaped
