In Brief
New Delhi Television Limited challenged a notice to reopen its 2008-09 assessment after four years, alleging it had failed to disclose material facts regarding convertible bonds issued by a UK subsidiary. The Supreme Court held that while fresh information from subsequent assessment years and minority shareholder complaints provided sufficient reason to reopen the assessment, the assessee had disclosed all primary facts requiring disclosure. The Court ruled that inferences drawn from facts disclosed are the assessor's responsibility, not the assessee's. Critically, it held that the notice failed to invoke the second proviso to Section 147 (applicable to foreign assets with extended 16-year limitation), depriving the assessee of fair opportunity to respond. The appeal was allowed and the notice quashed, permitting the revenue to issue a fresh notice properly invoking the correct provision.
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