TaxTMI 
TaxTMI 
2014 (11) TMI 187
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....ond the period of four years of the end of the relevant assessment year. The original assessment in the present case was completed under Section 143(3) by an order dated 16 March 2009 of the Assessing Officer. The order of the Assessing Officer indicates that the assessee had duly disclosed that during the course of the assessment year in question, it had closed its manufacturing activities and had entered into a lease agreement in respect of the land and building and for plant and machinery. Against the receipts therefrom, the assessee had claimed various expenses including administrative expenses, repair and maintenance, financial charges and depreciation. The Assessing Officer made a partial disallowance while computing the income und....
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.... expenses which are not fully verifiable. Particularly the expenses towards the repairs and maintenance of electricity amounting to Rs. 2,09,764/- are not supported by proper bills or vouchers. The specific details and purpose of these expenses could also not be explained convincingly. In view of this, an amount of Rs. 1,25,000/- would be disallowed out of the Repair & Maintenance Expenses to cover up the expenses which are not verifiable. This would result in an addition of this amount to the total income." A notice was issued to the assessee under Section 148 on 31 March 2014 stating that the Assessing Officer had reason to believe that the income of the assessee which was chargeable to tax for A.Y. 2007-08 had escaped assessment withi....
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....the reopening of the assessment has taken place beyond a period of four years of the end of the relevant assessment year, A.Y. 2007-08. The notice under Section 148 was issued on 31 March 2014. Under the proviso to Section 147, the jurisdictional requirement is that where a reopening of the assessment takes place beyond a period of four years after the expiry of the relevant assessment year, there should have been a failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment, for that assessment year. In the present case, there is merit in the submission which has been urged on behalf of the petitioner that the reasons which have been disclosed, in fact, would indicate that it is from a pe....
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.... of four years, the relevant test which has been laid down in the judgement of the Supreme Court in CIT v. Kelvinator of India Ltd. [2010] 320 ITR 561 is whether the Assessing Officer has tangible material to come to the conclusion that there is an escapement of income from assessment. The distinction between a situation where an assessment is reopened within four years from a case where an assessment is sought to be reopened beyond four years is set out in the following extract from the judgement of the Division Bench of the Bombay High Court: "In the present case, the assessment is sought to be reopened within a period of four years of the end of the relevant Assessment Year. Where an assessment is sought to be reopened beyond a period....