The Commissioner of Income-tax, Bangalore / The Asst. Commissioner of Income-tax, Bangalore v. Motor Industries Co. Ltd
[Citation -2014-LL-1215-31]
| Citation | 2014-LL-1215-31 |
|---|---|
| Appellant Name | The Commissioner of Income-tax, Bangalore / The Asst. Commissioner of Income-tax, Bangalore |
| Respondent Name | Motor Industries Co. Ltd. |
| Court | HIGH COURT OF KARNATAKA |
| Relevant Act | Income-tax |
| Date of Order | 15/12/2014 |
| Assessment Year | 1999-00 |
| Judgment | View Judgment |
| Keyword Tags | period of limitation • material on record • reassessment order • escaped assessment • change of opinion • reason to believe • question of law • fee received • technical service • reopening of assessment • full and true disclosure |
| Bot Summary: | The reassessment order makes it clear the assessment was completed under Section 143(3) of the Income Tax Act on 24.3.2003 granting exemption to the assessee under Section 80(O) to an extent of Rs.2,51,59,154/-. In the assessment for subsequent years, the deductions were not allowed on 3 the ground that the assessee has rendered only technical services and consideration received was only against providing technical services and not for any invention by the assessee or by BOSCH. The development agreement entered in to between the assessee company with BOSCH does not indicate any invention involved. The assessing authority was of the view that deduction allowed of Rs.2,51,59,154/- is erroneous and therefore, on the ground that the aforesaid income has escaped the assessment within the meaning of Section 147, the proceedings were reopened. With the change of the assessing authority, that too, after taking note of the assessment orders passed subsequent to the said order for the subsequent years, the assessment is sought to be reopened after a period of 4 years. Four years is the period of limitation prescribed for the re-opening of the assessment in the sense, an assessment cannot be reopened unless the case falls within one of the exceptions mentioned in the first proviso. If an assessment is to be reopened, the assessing authority has reasons to believe that any income chargeable to tax has escaped assessment, it is settled law that change of opinion cannot constitute a ground such as reason to believe for reopening the assessment and that is precisely what the appellate authorities have held. If an assessment is to be reopened after four years, then the conditions stipulated in the proviso is to be fulfilled. |