TaxTMI 
TaxTMI 
2021 (11) TMI 538
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....ated 5th November 2019 on the ground that the notice issued under Section 148 of the Income Tax Act (the said Act) itself was without jurisdiction. 3. Admittedly, respondents have decided to reopen the assessment four years after the assessment order and therefore, the proviso under Section 147 (2) will be applicable. Section 147 reads as under : Section 147 : Income escaping assessment. If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in t....
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....00,000/- under the head "advertisement and sales promotion expenses" which includes "colour idea concept" expenses of Rs. 8,15,48,504/-. Hence, petitioner had not disclosed all fully and truly material facts necessary for the assessment. Admittedly, the assessment was completed under Section 143 (3) read with Section 144C (3) of the said Act, 1961 on 25th April 2016. 6. On the allegation that petitioner had not fully and truly disclosed material facts, this allegation according to us is far from truth. Respondents, by a notice dated 17th April 2015 issued under Section 142(1) of the said Act had called upon petitioner to furnish details, explanation and documents for 53 items mentioned in the annexure. Item 11 reads as under : 1....
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....sessment is being reopened after the expiry of a period of four years from the end of the relevant year. In this case, as we have held that the allegation in the reasons recorded for reopening that petitioner has not disclosed all fully and truly material facts necessary for the assessment is incorrect, one of the condition for reopening the assessment before the Assessing Officer could assume jurisdiction for issuing notice under Section 148 has not been satisfied. On this ground alone, it can be concluded that the notice is issued without jurisdiction. 9. The tangible material to initiate assessment proceedings, as stated in the reasons for reopening, is an agreement dated 6th March 2014 post the period with which the impugned notice i....
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....lief that income chargeable to tax has escaped assessment Therefore, on this ground also the impugned notice is unsustainable. We are in respectful agreement with the view expressed by the Court in Writ Petition No.3338 of 2018 and apply the same principle in the case at hand. 10. Even in that case, the Court observed that the allegation of failure to disclose all fully and truly material facts necessary for assessment also was not correct and even in that case and we add, in the case at hand, there is a change of opinion and an attempt to review the assessment order. Paragraphs 10 and 11 of the said order read as under : 10. As noted above, the impugned notice dated 28th March, 2018 for reopening of assessment has bee....
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....ment order as some of the expenses forming part of the breakup of sales and promotions expenses had been disallowed in the assessment order dated 18th March, 2015 passed under Section 143(3) of the Act. This would clearly indicate that the impugned notice has been issued on account of change of opinion and it is an attempt to review the Assessment Order dated 18th March, 2015 passed under Section 143(3) of the Act. 11. In the circumstances, the impugned notice is quashed as being without jurisdiction. 12. Petition disposed. ============= Document 1 M/s. Asian Paints Ltd. A.Y. 2012-13 Reason recorded for re-opening In this case, the assessee filed original return of income of A.Y. 2012-13 on 27.11.2012 declaring total ....
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....rred on "Colour Idea Store'. From the order for A.Y. 2015-16, it is clear that the assessee had incurred expenses under the head "Colour Idea Concept" prior the date of agreement 06.03.2014 also. Therefore, it an aptly be summarised that the agreement dated 06.03.2014 was only a regularization of an ongoing arrangement between the assessee and its Dealers and these expenses had been incurred in earlier assessment years also including A.Y. 2012-13. to 4. Therefore, while passing assessment order for A.Y. 2015-16, the expenses for "Colour Idea Store" incurred by the assesse company was disallowed as revenue expenditure and allowed as capital expenditure to be capitalized as "Furniture & Fixture ". Acc....