2024 (12) TMI 326 - SCH - Income Tax

Validity of reopening of assessment - Notice issued beyond period of four years - addition of dividend income - gross delay of 457 days in filing the Special Leave Petition - As decided in HC 2017 (7) TMI 1010 - DELHI HIGH COURT reopening of assessments after a period of four years, ought to be an exception and not the rule. The purpose of this provision is to ensure that there is some finality which is attached after the period of four years, for assessments which have been completed u/s 143 (3) - AO has to necessarily record that there has been a failure on the part of the Assessee to disclose fully and truly all material facts necessary for his assessment, failing which the reopening of the assessment cannot be triggered. The reasons stated by the AO do not satisfy the mandatory legal requirement for reopening the assessment since they failed to record the failure on the part of the Assessee to disclose fully and truly all material facts necessary for the assessment. Impugned notice does not satisfy the rigors of Sections 147/148 of the Act as there has been no non-disclosure of the material facts by the Petitioner. In fact, even the reasons accompanying the impugned notice do not even say that there is any failure by the Petitioner to disclose fully and truly all the material facts. HELD THAT - We have heard for the petitioner as well as the learned counsel for the respondent on the said application and perused paragrpahs 4 and 5 of the affidavit filed in support of the application seeking condonation of delay. On the perusal of the same, we find that the reasons assigned are neither satisfactory nor sufficient in law so as to condone the delay of 457 days in filing the special leave petition. Hence, the application seeking condonation of delay is dismissed. Consequently, the Special Leave Petition is dismissed on delay.

Summary

The Supreme Court dismissed the Special Leave Petition due to a delay of 457 days in filing. The application seeking condonation of delay was also dismissed as the reasons provided were deemed unsatisfactory.