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July 2025

Reassessment — International transactions — Arm’s length price — Condition precedent — Notice after four years — Failure to disclose material facts necessary for assessment — Unless assessee shown to be aware of facts, it cannot be said to have failed to disclose them — Nothing to show assessee was aware of third party prices — Transfer pricing study of assessee accepted by Transfer Pricing Officer and assessment completed on basis thereof — Presumption that query raised was considered in assessment — Assessment on basis of change of opinion — Notice not valid:

By Keshav Bhujle | Ritu Punjabi, Advocates
Reading Time 4 mins

23 Sanofi India Ltd. vs. Dy. CIT:

(2025) 474 ITR 114 (Bom):

A. Y. 2007-08: Date of order 29 February 2024:

Ss. 92CA, 143(3) 147 and 148 of ITA 1961:

Reassessment — International transactions — Arm’s length price — Condition precedent — Notice after four years — Failure to disclose material facts necessary for assessment — Unless assessee shown to be aware of facts, it cannot be said to have failed to disclose them — Nothing to show assessee was aware of third party prices — Transfer pricing study of assessee accepted by Transfer Pricing Officer and assessment completed on basis thereof — Presumption that query raised was considered in assessment — Assessment on basis of change of opinion — Notice not valid:

The assessee petitioner filed its return of income for the A. Y. 2007-2008 on October 30, 2007 declaring a total income of ₹2,33,67,08,748. Subsequently, a revised return was filed on March 25, 2009 wherein a claim of additional tax deducted at source of ₹19,86,957 was made. The case was selected for scrutiny and assessment u/s. 143(3) of the Income-tax Act, 1961 was made on December 28, 2010 determining a total income of ₹240,48,78,390.

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