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TMI Blog2013 (2) TMI 290X X X X Extracts X X X X X X X X Extracts X X X X ..... nd truly all material facts necessary for the purpose of assessment. Therefore, the notice is not sustainable. Set off of business loss against Income from other sources where income from business is not liable to tax in India in the absence of PE in India - held that:- Even on merits the ruling of Authority for Advance Ruling in the assessee's case would not be over-ruled by subsequent decision of the Authority for Advance Ruling in the case of another assessee. Consequently, initiation of action under Section 263 for assessment years 2004-2005 and 2005-2006 was quashed on the ground that the assessment order could not be said to be prejudicial to the Revenue or erroneous as the assessing officer was merely following a binding ruling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b) Whether on the facts and circumstances of the case and in law, the Tribunal is correct in holding that the AO was not justified in taxing income from other sources amounting to Rs. 12,57 crore without allowing its set off against the business loss of Rs. 48.80 crore ignoring the fact that assessee's income from business is not liable to tax in India in the absence of PE in India and thus once the business income is not assessable as per the Act, the loss arising from the same cannot be set off with Income from other sources ?" 3. The respondent-assessee is a foreign company having residential status of non-resident. The respondent-assessee had approached the Authority for Advance Ruling. On 30th April 2001, the Authority for Advance R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessing officer inter alia on the ground that in assessee's own case for assessment years 2004-2005 and 2005-2006, the Director of Income Tax had initiated proceedings under Section 263 of the Act on the identical grounds and that decision under Section 263 of the Act had been set aside by this Court by order dated 21st April 2010 in Writ Petition No.866 of 2010. 7. We note that the notice for re-opening was issued on 31st March 2010 which is beyond a period of four years from the end of the relevant assessment year 2003-2004 and the reasons recorded for re-opening the assessment does not allege that there has been any failure on the part of the respondent-assessee to disclose fully and truly all material facts necessary for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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