2012 (9) TMI 516 - SCH - Income Tax

Reopening of assessment u/s 147 - denial of benefit of Section 80HH - Held that - Law as declared by the jurisdictional High Court that the civil construction work carried out by the assessee would be entitled to the benefit of Section 80HH which view was squarely reversed in the case of Commissioner of Income-Tax vs. N.C. Budharaja and Co. and Another reported in 1993 (9) TMI 6 - SUPREME COURT thus any subsequent reversal of the legal position by the judgment of the Supreme Court does not authorise the Department to reopen the assessment which stood closed on the basis of the law as it stood at the relevant time - in favour of assessee

Summary

The Supreme Court dismissed civil appeals regarding the reopening of assessments based on the limitation period under Section 147/149(1A) of the Income Tax Act, 1961. The Department cannot reopen assessments based on subsequent legal reversals if the assessment was closed under the law as it stood at the relevant time. Civil appeals were dismissed due to the meager tax amount involved.