2015 (11) TMI 1138

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....nt Year 2005-06. It is also directed against the order dated 10.02.2014 whereby the objections preferred by the petitioner were rejected by the Assessing Officer. 2. The assessment under Section 143(3) was originally done on 19.12.2008. The notice under Section 148, which is impugned herein, has been issued beyond the period of four years from the end of the relevant assessment year. The reasons for initiating the reassessment proceedings which were supplied to the petitioner on 16.01.2014 are as under:- "INCOME TAX DEPARTMENT 1. Name & Address of the Assessee : Discovery Asia Inc. One Discovery Place Silver Spring, Maryland 20910-3354 USA 2. Permanent Account No. : AABCD4333P 3. Status : Foreign Company ....

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....eement made after 31.05.1997 but before 01.06.2005. Therefore, in such a case, the provisions of section 44D(3) of the Act would apply, which provides that notwithstanding anything to the contrary contained in sections 28 to 44C, in the case of an assessee being a foreign company, no deduction in respect of any expenditure or allowance shall be allowed under any of the said sections in computing the income by way of royalty received from government or an Indian concern in pursuance of an agreement made by a foreign company after 31.03.1976 but before 01.04.2003. 3. Perusal of the assessment record reveals that in the assessee's case, the royalty income amount to Rs. 336,754,388/- was taxed @ 15% under the DTAA. However, as the ....

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....n quoted above and it is evident that there is no whisper of the petitioner having failed to disclose fully and truly all the material facts necessary for its assessment. It is therefore clear, based on the said decisions, that the necessary ingredients for invoking the provisions of Section 147 beyond the period of four years are missing. As such, the initiation of the reassessment proceedings pertaining to the assessment year 2005-06 is without the authority of law. 5. We may also point out that the very issue which has been raised in the reasons has been considered in detail in the course of the original assessment proceedings. In fact, the reasons themselves indicate that what is sought to be done through reassessment was already ava....