2026 (7) TMI 1654

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....e Tax Act, 1961 (for short 'the Act') for reopening the assessment for Assessment Year (A.Y) 2013-14 as well as the Order dated 10.08.2021 disposing of objections raised by the petitioner against the reopening of the assessment. FACTS OF THE CASE 2. The petitioner is a limited liability partnership firm, which filed its return of income for the A.Y. 2013-14 on 29.09.2013 declaring a total loss of Rs. 1,85,92,540/-. Thereafter, the case was selected for scrutiny and various questions were inquired including the question of disallowance under Section 14A of the Act. The said assessment was eventually finalised under Section 143(3) of the Act on 11.03.2016, accepting the returned income of the petitioner. 2.1 Thereafter, on 18.03.2020....

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....inal assessment. It is further submitted that the respondent had sought to reopen the assessment solely on the basis of the information available and not from any other source from which it could be held that the petitioner has failed to disclose anything at the time of original scrutiny. It is further submitted that the respondent has sought to reopen a completed assessment beyond the period of four years from the end of the assessment year which is not permissible except the escapement having occasion for the failure of the assessee to truly and fully disclose all the material facts required for the assessment. Hence, it is urged that the impugned Notice may be quashed and set aside. 3.1 Reliance is placed on the decision of this Court....

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....on of change of opinion. 4.2 It is further alleged that as per Explanation 1 to Section 147 of the Act, a mere provision of books of accounts does not amount to true and full disclosure of all materials. It is therefore submitted that the petitioner was required to compute on its own and was required to make its own disallowance of Rs. 9.31 crores as per mandate of Section 14A of the Act and Rule 8D of the Rules. It is thus urged that at this stage, the reassessment proceedings may not be scuttled and the writ petition may be dismissed. ANALYSIS & OPINION 5. We have heard the contentions raised by both the sides and perused the material placed on record. The facts which are established on record are that the petitioner had filed it....