Reassessment

Lapse or error on the part of the AO to apply legal provisions/section cannot be attributed and regarded as a failure on the part of the assessee to make full and true disclosure of the material facts in the original assessment proceedings — as held by DelHC in Atma Ram Properties Private Limited v DCIT — In favour of: The assessee.

Where on account of delay and limitation, the remedial action cannot be taken by the revenue under the applicable provision of the Income-tax Act, the revenue was not justified in resorting to the provisions of s 147.

Decided on: 11 November 2011.