Commissioner of Income Tax vs Tourism Finance Corporation of India Ltd.

The revenue is aggrieved by an order dated 3-8-2007 passed by the Income Tax Appellate Tribunal (the Tribunal), Delhi Bench G in ITA Nos. 1141 and 1144/Delhi/2006 relevant for the assessment years 1998-99 and 2001-02.

A notice was issued to the assessee u/s 147/148 of the Income Tax Act, 1961 (herein after referred to as the Act) for reopening the assessment.

The Commissioner (Appeals) (Commissioner (Appeals)) as well as the Tribunal considered the reasons for reopening the assessment and concluded that it was nothing more than a change of opinion.

It appears that the assessing officer had placed reliance upon Section 41(4A) of the Act but it was noted that that provision had come into effect from 1-4-1998 and this was mentioned by the assessee in a footnote in its computation of income.

On these facts, both the Commissioner (Appeals) as well as the Tribunal came to the conclusion that there was a full and complete disclosure of facts by the assessee and there was no reason to issue a notice to the assessee to reopen its assessment.

The Tribunal has also relied upon a decision of a Full Bench of this court in Commissioner of Income Tax Vs. Kalvinator of India Ltd.,

In view of the above, we find that no substantial question of law arises in this appeal. Accordingly, the appeal is dismissed.