Assessment completed u/s 143(3) accepting assessee's return, ...

Tax reassessment quashed for lack of new material after 4 years despite earlier notice.

Case Laws     Income Tax

October 11, 2024

Assessment completed u/s 143(3) accepting assessee's return, which included export incentive and foreign exchange fluctuation as other business income. Subsequently, notice u/s 154 issued based on audit objection regarding disallowance of export incentive and foreign exchange fluctuation from deduction u/s 80IC, but no rectification order passed. After four years, reopening assessment initiated, alleging escaped assessment. Assessee contended all material facts fully disclosed during original assessment and compliance with Section 154 notice. Held, no new material available after four years to justify reopening. Assessee truthfully disclosed all relevant facts. Notice u/s 148 invalid, addition made by Assessing Officer deleted. Appellate Tribunal ruled in favor of assessee, setting aside reassessment proceedings beyond four-year period due to lack of undisclosed new material.

View Source