The Delhi
High Court quashed the second reassessment notices issued under Section 148 for
AY 2009–10, holding them to be without jurisdiction and based on mere change of
opinion. The issue of interest-free loans received from RRPR had already been
specifically examined during the first reassessment, where no addition was made
after full disclosure of facts. The Court held that reopening on the same
transaction under a different provision (Section 2(24)(iv) instead of Section
2(22)(e)) was impermissible, and there was no failure to disclose material
facts to justify extended limitation. Consequently, the reassessment notices
and all consequential proceedings were quashed, with costs of ₹1,00,000 per
case imposed on the Department.
Source Link- https://delhihighcourt.nic.in/app/showFileJudgment/75819012026CW105272017_144252.pdf
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