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2012 (2) TMI 193 - DELHI HIGH COURTValidity of re-opening of assessment beyond the period of four years of the end of the relevant A.Y. - Investment company reopened on ground that provision for diminution in the value of the unquoted investments was an unascertained liability and ought to be added back to Net Profit - Original order framed u/s 143(3) A.Y. 03-04 - Held that:- In the absence of any specific provision in Section 115JB at the time when the original assessment was made and having regard to the debatable nature of the issue as to whether Clause (c) of Explanation 1 to Section 115JB would cover cases of amounts set aside for diminution in the value of investment, it can never be postulated that it was the duty of the assessee to have instructed or informed the A.O. as to the legal inference which he should draw from the primary facts. There was thus no failure on the part of the petitioner to disclose full and true primary particulars at the time of the completion of the original assessment. The notice issued u/s 148 is therefore, declared to be without jurisdiction Decided in favor of assessee. Validity of re-opening of assessment of A.Y. 06-07 questioned on basis of judegment in A.Y. 03-04 - adjustment to the book profit u/s 115JB not made for provision for NPA and for doubtful debts return processed u/s 143(1)(a) Held that:- Firstly, notice issued u/s 148 is within the period of 4 years from the end of relevant A.Y. Secondly, issue whether the provisions in question should be added back in terms of the relevant clause in the Explanation-1 below Section 115JB is debatable but the fact remains that it could not be examined since the return filed by the assessee was merely processed u/s 143(1)(a) and, therefore, no inference or opinion could have been formed by A.O. as to the disallowbility of the provisions. Validity of notice issued u/s 148 upheld Decided against the assessee.
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