S. 147: In addition To allegation, there must be finding of failure to disclose material facts

Qualcomm Inc vs. ADIT (Delhi High Court)

For AY 2003-04 the AO reopened the assessment after 4 years from the end of the AY on the ground that the assessee had not fully and truly disclosed the fact that it had a permanent establishment (PE) in India and that it was subject to the higher rate of tax of 20% on the gross royalty. The assessee filed a Writ Petition pointing out that the AO had reopened the assessment earlier on the same point and that he had passed an assessment order after being satisfied with the assessee’s submissions that it had no PE. HELD by the High Court quashing the reassessment proceedings: