2023 (6) TMI 1457 - HC - Income Tax

Reopening of assessment u/s 147 - assessee had paid interest on borrowed funds for projects which are project funds and consequently the interest expense ought to have been disallowed and added to the Work in Progress (WIP) of the assessee - HELD THAT - We find nothing to indicate failure to disclose any material fact. Upon examining the order u/s 143(3) we find that the AO has considered all documents and accepted the Business Loss and allowed Unabsorbed Depreciation to be carried forward to the subsequent years as per the Act. The impugned notice set aside.

Summary

The High Court of Bombay quashed a notice issued under section 148 of the Income Tax Act for Assessment Year 2012-13, as it was issued after the expiry of four years without evidence of failure to disclose material facts. The court found no failure to disclose material facts and set aside the notice and order issued by the respondent. (Case citation: TMI DHIRAJ SINGH THAKUR AND KAMAL KHATA, J.)