Ananta Land Mark Pvt. Ltd. v. Dy.CIT (Bombay High Court)


S. 147 : Reassessment-After the expiry of four years-No failure to disclose material facts-Interest income-Deduction-Change of opinion-No power of review-Reassessment is held to be bad in law [S. 37(1), 56, 57, 148 , Art. 226]
The assesse is engaged in the business of real estate and development. The assessment was completed u/s. 143 (3) of the Act allowing the deduction claimed against interest income u/s 57 of the Act. The Assessment was reopened on the ground that the interest paid on the loans is allowable under section 37 (1) of the Act. Since there was no business income during the year, the entire interest should have been capitalised to the WIP as against claiming as deduction u/s. 57 which is not an allowable deduction. Against the disposal of objection, the assesse filled writ before the High Court. Allowing the petition the Court held that there was neither an omission nor failure on the part of the assesse to disclose material facts necessary for assessment. reassessment notice was held to be bad in law