TaxTMI 
TaxTMI 
2019 (1) TMI 954
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....f the learned advocates for the respective parties, the matter is taken up for final hearing today. 3. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the validity of the notice dated 04.12.2017 issued by the respondent under section 148 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") seeking to reopen the assessment of the petitioner for assessment year 2011-12. 4. The petitioner, a Company, filed its return of income for assessment year 2011-12 on 29.11.2011 declaring total income of Rs. 1,79,42,470/-. The audit report as required under section 92E of the Act in Form-3CEB was filed on 30.11.2011. The return came to be selected for scrutiny and regular assessment came ....
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....sment on the ground that the petitioner had international transaction with its Associated Enterprise of aggregate value of Rs. 11,25,77,741/-, which was required to be referred to the Transfer Pricing Officer under section 92CA for computation of arms length price of such transactions. It was pointed out that in view of the fact that in the preceding assessment year, the arms length price of corporate cost was taken at Nil and an upward adjustment was proposed by the Transfer Pricing Officer, the Assessing Officer seeks to reopen the assessment on the ground that the arms length price of payment of corporate cost to Associated Enterprise could not be benchmarked at Nil as done in the previous year and subsequent years and resulted into an u....
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....was made to the reasons recorded for reopening the assessment which read as under: "Reasons:- On verification of case records for AY 2011-12, it was revealed that assessees company M/s Tudor India Ltd. had international transaction with its AE, aggregate value of Rs. 11,25,77,741/- and as such, the AO was required to refer the case to TPO u/s. 92CA for computation of ALP of such transactions. It was also noted international transactions during AY 2011-12 also included payment of Rs. 3,31,22,076/- to AE towards corporate cost/management cost. In the preceding AY 2010-11, the ALP of corporate cost taken at NIL and an upward adjustment proposed by TOP. Further, the ALP of corporate cost at NIL was also confirmed by DRP, Ahmed....
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.... reference in the reasons recorded. Under the circumstances, there is no failure on the part of the petitioner to disclose fully and truly all material facts necessary for its assessment for the assessment year under consideration. Moreover, on a reading of the reasons recorded for reopening the assessment in their entirety, there is nothing therein to indicate that there is any failure on the part of the petitioner to disclose fully and truly all the relevant facts. 9. Besides, on a plain reading of the reasons recorded, it is evident that the same refers to sections 92C and 92CA of the Act and the failure on part of the Assessing Officer to observe the procedures prescribed thereunder. Under the circumstances, this being a reopening of....