Foramer France v. CIT

DCIT, Madurai vs. Ramco Systems Limited, Rajapalayam

In the result, both appeal filed by the Revenue as well as CO filed by the assessee are dismissed

Bench: Shri Chandra Poojari & Shri Duvvuru Rl Reddyआयकर अपील सं./I T.A. No.25/Mds/2016 "नधा"रण वष"/Assessment Year:2005-06 & C.O. No. 31/Mds/2016 [In I.T.A. No. 25/Mds/216] The Deputy Commissioner Of M/S. Ramco Systems, Income Tax, Vs. 47, Psk Nagar, Corporate Circle 2(1), Rajapalayam. Madurai. [Pan:Aabcr2076B] (अपीलाथ" /Appellant) (Respondent/Cross Objector) अपीलाथ" क" ओर से / Appellant By : Shri Arun C. Bharat, Cit ""यथ" क" ओर से/Respondent By : Shri V. Jagadisan, Ca सुनवाई क" तार"ख/ Date Of Hearing : 03.05.2017 घोषणा क" तार"ख /Date Of Pronouncement : 11.07.2017 आदेश /O R D E R Per Duvvuru Rl Reddy: This Appeal Preferred By The Revenue & The Cross Objection Filed By The Assessee Are Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) 1, Madurai Dated 06.10.2015 For The Assessment Year 2005-06. In The Appeal, The Grievances Of The Revenue Are That The Ld. Cit(A) Erred In Cancelling The Reopening Of Assessment Under Section 147Of The Income Tax Act, 1961 [“Act” In Short] On The Ground Of Write Off Of Trade

…t is well settled law that assessment cannot be reopened on mere change of opinion. 7. The Hon’ble Supreme Court in the case of CIT v Foramer France [264 ITR 566] affirmed the decision of the Hon’ble Allahabad High Court in the case of Foramer France v. CIT [247 ITR 436], wherein the Hon’ble High Court has held that when there was no failure on the part of the assessee to disclose fully and truly all material facts for assessment, the assessment cannot be reopened under section 147 of the Act and is barred by limitation. It was also held that the assessment cannot be reopened on mere change of opinion. 7.1 In t…