COMMISSIONER OF INCOME TAX Vs. SIL INVESTMENTS LTD.

JUDGEMENT

(1.) ADAR DURREZ AHMED, J. : 2769/Del/2009 and 2770/Del/2009, pertaining to the asst. yr. 2001 -02 and 2002 -03 respectively. An identical issue had been raised before the Tribunal in both these matters. The issue was with regard to the validity of the assessment made by the AO under s. 143/147 of the IT Act, 1961 on account of the challenge to the invocation of the provisions of s. 147 of the Act for reopening of the assessments which had been completed earlier.

(2.) IT is an admitted position that the original assessments had been completed prior to four years of their reopening and, therefore, the notices under s. 148 could only be issued by invoking the proviso to s. 147 of the IT Act, 1961. The said proviso makes it clear that no case can be re -opened after four years from the end of the relevant assessment year unless there is any income chargeable to tax which has escaped assessment for such assessment year, inter alia by reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment of that assessment year.

(3.) THE CIT(A) as well as the Tribunal agreed with the submission made by the assessee and held the invocation of s. 147 to be invalid. The reassessments under s. 147/148 were set aside on this ground.