Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (6) TMI 425 - ITAT KOLKATARe opening of assessment - excess carried forward of unabsorbed deprecation was allowed in the assessment order - hypothetical income credited to the profit and loss account while computing book profit u/s 115JB - amount debited to the profit and loss account on account of "Provision for gratuity" which was an unascertained liability hence added back to arrive at the book profit - Held that:- From the reasons for reopening it is observed that the AO. reopened the assessment u/s.147 on the basis of the facts that came to his notice from the examination of the assessment records. That means, the facts on which the A.O. formed his satisfaction that income of the assessee had escaped assessment for the year under appeal, were all available on the assessment records and such satisfaction was not based on any new facts or any change in law. There is no dispute that the assessee had reduced an amount of Rs.2,62,76,653/- on account of adjustment for hypothetical income credited to income, from the figure of Net Profit as per its profit and loss account while computing its Book Profit U/S 115JB of the Act. The AO. had, while completing the assessment uls 143, computed Book Profit u/s 115JB and in such computation had t also reduced the impugned amount of Rs.2,62,76,653/- . Also the assessee had claimed and was allowed in the assessment completed u/s 143, a deduction of Rs.2,06,47,310/- towards "Written- off amount of intangible assets" as had been appropriated from Net profit in the profit & loss account as 'Extraordinary items'. The A.O. himself has noted in the reasons for reopening that he noticed the above facts "on examination of the assessment records", which means that those facts were all available on record of the AO. before the reopening. The reopening was not done on the basis of any new material. Thus it is seen that in the recorded reasons there is not a whisper by the AO that the income chargeable to tax has escaped assessment due to the failure on the part of the assessee to disclose fully and truly all material facts necessary. As decided in E.I.Dupond India Ltd. vs DCIT (2013 (2) TMI 406 - DELHI HIGH COURT) it was incumbent to the AO to demonstrate that there was failure on the part of the assessee to fully and truly disclosed all material facts necessary for its assessment. In favour of assessee.
|