No reassessment after 4 years alleging wrong allowance of exp. if assessee had disclosed all material facts

No reassessment after 4 years alleging wrong allowance of exp. if assessee had disclosed all material facts

IT : Where assessment in case of assessee was completed under section 143(3) wherein assessee's claim for salary paid to partners was allowed, in absence of assessee's failure to

disclose all material facts necessary for assessment, Assessing Officer could not initiate reassessment proceedings on basis of change of opinion that claim for payment of salary was wrongly allowed 

[2015] 55 taxmann.com 77 (Gujarat)
HIGH COURT OF GUJARAT

SKY Diamonds v. Assistant Commissioner of Income-tax*

Section 37(1), read with section 147, of the Income-tax Act, 1961 - Business expenditure - Allowability of (Firm/partner, in case of) - Assessment year 2008-09 - Whether where assessment in case of assessee was completed under section 143(3) wherein assessee's claim for salary paid to partners was allowed, in view of fact that assessee had submitted all material facts fully and truly in support of its claim alongwith audit report, in view of proviso to section 147, Assessing Officer could not initiate reassessment proceedings after expiry of four years from end of relevant assessment year taking a view that claim for payment of salary was wrongly allowed - Held, yes [Paras 9,10 and 12] [In favour of assessee]