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Reassessment of the existence of a permanent establishment...
Permanent-establishment reassessment cannot revisit scrutinised disclosures; extended reopening fails without undisclosed material facts and within statutory limitation.
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Reassessment of the existence of a permanent establishment cannot revisit an issue already examined during scrutiny merely because the assessment order did not expressly record a finding. Where subscription arrangements and the agent relationship were disclosed and considered, reopening would improperly cure the Assessing Officer's failure to record a conclusion, undermining assessment finality. Reopening after four years from a scrutiny assessment also requires failure to make a full and true disclosure of material facts. As that jurisdictional condition was absent and the notice was issued beyond the statutory six-year period, the reassessment notice was quashed without deciding whether a permanent establishment existed in India.
Reassessment of the existence of a permanent establishment cannot revisit an issue already examined during scrutiny merely because the assessment order did not expressly record a finding. Where subscription arrangements and the agent relationship were disclosed and considered, reopening would improperly cure the Assessing Officer's failure to record a conclusion, undermining assessment finality. Reopening after four years from a scrutiny assessment also requires failure to make a full and true disclosure of material facts. As that jurisdictional condition was absent and the notice was issued beyond the statutory six-year period, the reassessment notice was quashed without deciding whether a permanent establishment existed in India.
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