The Director Of Income Tax(It)-Ii v. Locus Industries Limited

ASN IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (L) NO.1262 OF 2012 The Director of Income Tax(IT)-II. v. Locus Industries Limited. ..Appellant. ..Respondent. Mr. Tejveer Singh for the Appellant. Mr. J.D. Mistri, Sr. Counsel with Mr. Niraj Sheth and Mr. Sameer Chitnis i/by Crawford Bayley & Co. for the Respondent. CORAM : J.P. DEVADHAR AND M.S. SANKLECHA, JJ. DATE : 09TH JANUARY, 2013 PC: This appeal by the revenue against the order dated 30/3/2012 of the Tribunal raises the following question of law for consideration of this Court. Whether on the facts and in the circumstances of the case and in law the Tribunal is correct in holding that the reassessment proceedings are bad in law and void ab-initio without appreciating the fact that assessee had failed to disclose the true nature of the transaction in the context of taxability of the amount? 2)By the impugned order the Tribunal has held that the reopening of the assessment under Section 147 and 148 of the Act was not warranted in the facts of the present case as there was no failure on the part of the respondent assessee to truly and fully disclose all material facts required for the purpose of assessment. The notice of reopening has admittedly been issued beyond the period of 4- years from the date of the relevant assessment year and the reason for reopening also does not allege any failure on the part of the respondent assessee to disclose fully and truly all the material facts required for the purpose of assessment. Further, the Tribunal has recorded a finding of fact that the Assessing officer in the original assessment has discussed the issue which is sought to be raised for reopening the assessment. Consequently this is only a case of change of opinion on the part of the Assessing officer and therefore, reopening of assessment under Section 147 and 148 of the Act is bad in law. In the facts of this case we find no fault in the order of the Tribunal. In the circumstances, no substantial question of law arises for consideration of this court. The appeal is dismissed with no order as to costs. (M.S.SANKELCHA, J.) (J.P. DEVADHAR, J.)