Relief to Indian Bank: ITAT quashes reassessment proceedings against the Bank

Two appeals were filed by Indian Bank against the order of CIT(A) confirming the action of AO in upholding the reopening of reassessment proceedings.

The learned counsel for the assessee stated that in both the years original assessment was completed by the AO u/s. 143(3) of the Act and reopening is beyond 4 years.

The Honorable ITAT referred case law of the Hon’ble Supreme Court in the case of M/s. Foramer France and Chennai High Court in the case of M/s. RPG Transmissions Ltd.

The court made the view that there is no whisper in the reasons recorded that there is no failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment and the assessment was framed u/s 143(3) of the Act and reopening beyond 4 years which is against the provisions of the Act. Accordingly, the reassessment proceedings were quashed and the appeal of the assessee was allowed.