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2019 (3) TMI 1126 - BOMBAY HIGH COURTReopening of assessment u/s 147 - original assessment u/s 143(3) - notice issued beyond the period of four years from the end of relevant assessment year - no failure on the part of the assessee to disclose truly and fully all material facts - three grounds of notice, prior period expenses, non recognition of income & warranty provision - HELD THAT:- On both grounds contained in the reasons recorded by the Assessing Officer namely the prior period expenses as well as the provision for warranty became subject matter of the scrutiny during the original assessment. Thus, on both grounds no failure on the part of the assessee to disclose truly and fully all material facts as well as scrutinized grounds, the impugned notice based on these grounds cannot be sustained. Revenue Recognition - Difference between the bill amount and the income reflected in the accounts of the assessee - we may notice that in the books of accounts, the assessee had made full disclosure with respect to the same which also provided the ground for such treatment given by the assessee to the receipts. There was no failure on the part of the assessee to disclose truly and fully all material facts necessary for assessment. Reference to first explanation to Section 147 of the Act in this respect, would not aid the revenue. In the order of assessment, however, there was no addition made on this ground. Clearly, therefore, the Assessing Officer through scrutiny assessment agreed that the assessee on the accounting treatment given by the assessee to such billed amount and on that ground also, the Assessing Officer now cannot press the ground in service to sustain the impugned notice of reassessment. - Decided in favour of assessee.
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