9911796707
TMI Blog2023 (1) TMI 424X X X X Extracts X X X X X X X X Extracts X X X X ..... etition, the petitioner challenges the notice dated 31st March 2021 issued under section 148 of the Income Tax Act, 1961 ('the Act'), whereby it sought to reopen the assessment of the assessment year 2013-14. The petitioner also challenges the order dated 7th February 2022, whereby the objections to the issuance of notice under section 148 of the Act were rejected. 3. Briefly stated the material facts are as under : (a) The petitioner is a public limited company engaged inter-alia in the business of manufacturing and selling of paints, varnish, primer etc. The business is carried on through various dealers who purchase the goods from the petitioner on the principal-to-principal basis and sell the same to the ultimate customers. (b) Wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , to submit the details of the 'advertisement and sales promotion expenses'. (d) In response to the said show cause notice, the petitioner fled its reply on 17th October 2016 giving details regarding advertising and sales promotion expenses, a break-up of which did reflect that an amount of Rs.17,41,85,275/- was spent under the head 'Colour Idea Stores'. 4. The AO finally passed the order of assessment dated 25th January 2017 under section 143(3) read with section 144C(3) of the Act for the assessment year 2013-14 computing the total income of the petitioner at Rs.1351.78 crores, after making certain disallowances reflected in the advertisement and sales promotion expenses. However, it is stated that the claim of expenses under the head ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 012-13 to examine the above stated issue. 3. The assessee furnished the details regarding the amounts involved to the above mentioned issue for A.Y. 2013-14. On perusal of the same, it is seen that an amount of Rs.17.42 crores escaped assessment as the assessee failed to disclose such information during the course of assessment proceedings. 4. In view of the above, the undersigned has reason to believe that the income exceeding Rs.1,00,000/- has escaped assessment within the meaning of Section 147 of the Act. Therefore, proposal for reopening of A.Y. 2013-14 by issuing notice u/s 148 of the Act is being made u/s 151 of the Act for your kind perusal and approval. 5. In view of the reasons recorded above, I am of the opinion that income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be permitted to be scuttled. 8. Proviso to section 147 of the Act, as it stood then, envisaged that no action under section 147 of the Act shall be taken after the expiry of four years from the end of the relevant assessment year unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year. 9. In Hindustan Lever Ltd. Vs. R.B. Wadkar, Assistant Commissioner of Income-Tax and Others 2004 ITR 332 Vol.268, this Court held : " .......The reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X
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