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II. Useful Caselaws:
1. E.I. Dupont India Pvt. Ltd. Vs. Dy. CIT, W.P.(C) 4507/2012, Date of Decision: 14.02.2013, High Court of Delhi
Failure
to disclose all material facts necessary for assessment is a condition
precedent for reopening of an assessment beyond the period of four years
from the date of assessment.
Held:
“Since this
was a case of proposed reopening of assessment after four years from the
end of the relevant assessment year it was incumbent upon the assessing
officer to demonstrate that there was failure on the part of the
assessee to fully and truly disclose all material facts necessary for
its assessment. The purported reasons which we have extracted above do
not even allege that there has been a failure on the part of the
assessee to disclose any material fact. In fact, even in the impugned
order dated 31.05.2012 there is no mention of what fact the assessee had
failed to disclose which was necessary for the assessment in the
original round of assessment. Failure to disclose all material facts
necessary for assessment is a condition precedent for reopening of an
assessment beyond the period of four years from the date of assessment.
This is a pre-condition set out in the statute itself. It is ordered
accordingly. All the proceedings pursuant to the notice dated 27.03.2012
are quashed. The writ petition is allowed”.
(Please click here for judgment)
2. Assistant
Commissioner of Income Tax Vs. M/s Jay Bharat Maruti Ltd., W.P. (C.)
711/2013, Judgment Delivered on: 08.02.2013, High Court of Delhi
The passing of an order dealing with the objections filed by the assessee is not an empty formality.
The assessing
officer has to apply his mind to the objections raised by the assessee
and use his grammatical sense while dealing with the objections of the
assessee. It should not be a cut-paste job like repetition of section
147 and 148 of the Income tax Act and extracts of quotations from
Supreme Court and High Court decisions in the order. Thus, the learned
court has arrived at correct decision to set-aside the order and directs
the assessing officer to provide an opportunity of being heard to the
assessee.
(Please click here for judgment)
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