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2013 (12) TMI 711 - ITAT DELHIReassessment u/s 147 - Held that:- The auditor has mentioned in the Audit Report that the assessee made recoveries against recoverable written off to the tune of Rs.5.56 crore, which was credited to the Profit and loss account - When the auditor is reporting that the amount of recoveries has been credited to the P&L account, it shows that the said amount had found its way into the taxability net - There was appropriate, full and true disclosure of all the relevant aspects on this point - The assessment has been reopened on the basis of audit report already available on record making such observations, aptly demonstrates that there was no failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment - The material condition for reopening the case is lacking. The solitary basis for the initiation of reassessment is the audit report furnished by the assessee along with the return of income indicating that the amount representing recoveries was credited to the P&L Account - Such audit report was available with the AO at the time of framing assessment - The AO did ask about the details of the such amount debited to the P&L account, which amount is `net’ of the recoveries - When such details were furnished and no addition was made, it has to be presumed that the AO got convinced with such details - There is no fresh material coming into the possession of the AO which prompted him to issue notice u/s 148 - Consideration of the same material already on the record of the AO, which led to the initiation of reassessment is a case of change of opinion - Decided in favour of assessee.
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