February 2023
Reassessment — Notice after four years — Condition precedent — Failure on part of the assessee to disclose fully and truly — Assessee disclosing all material facts in response to notices — Reasons recorded not specifying material that the assessee had failed to disclose — Notice issued on erroneous factual basis — Mere reproduction of statutory provisions do not suffice — Notice and order rejecting assessee’s objections quashed and set aside
By K. B. Bhujle, Advocate
79 Rajeshwar Land Developers Pvt Ltd vs. ITO
[2022] 450 ITR 108 (Bom)
A Y.: 2013-14
Date of order: 13th June, 2022
Sections: 142(1), 143(2), 147 and 148 of ITA 1961
Reassessment — Notice after four years — Condition precedent — Failure on part of the assessee to disclose fully and truly — Assessee disclosing all material facts in response to notices — Reasons recorded not specifying material that the assessee had failed to disclose — Notice issued on erroneous factual basis — Mere reproduction of statutory provisions do not suffice — Notice and order rejecting assessee’s objections quashed and set aside
For the A. Y. 2013-14, the AO issued a notice under section 148 of the Income-tax Act, 1961 to reopen the assessment on the ground that the assessee had claimed excess deduction of Rs. 7,44,36,332 on account of other expenses which were required to be disallowed as details of expenses in annexure amounted to only Rs. 12,71,375. The assessee filed objections and submitted that the AO had overlooked the second page of Note 15 in the return of income wherein the details of the amount of Rs. 7,44,36,332 were mentioned and the break up given. The assessee’s objections were rejected.
The Bombay High Court allowed the writ petition filed by the assessee and held as under:
“i) During the original scrutiny ass
