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2010 (3) TMI 164 - HC - Income TaxReassessment - there is escapement of income of ₹ 36, 21,500 and accordingly it is a fit case for reopening under section 147 of the Income-tax Act, 1961, within the time limit of four years from the end of the relevant assessment year. Hence, the assessment for the assessment year 2004-05 is hereby reopened. There are two reasons on the basis of which reopen the case- The first relates to the write off of bad debts in the amount of ₹ 6.46 crores. The second relates to the computation of book under section 115JB. Held that- (i) during the course of assessment proceedings, the assessment officer brought his mind to bear upon the question as to whether the assessee was entitled to claim a deduction under section 36(1)(vii), with respect to bad debts, details of which were furnished to the assessing officer, pursuant to which an assessment order came to be passed to reopen the assessment was that the assessee had not debited any amount towards the write off of debts/advances to the profit and loss account. Such requirement is not contained in section 36(1)(vii). There was an absence of tangible material on the basis of which the assessment could have been reopened. The reopening on this ground is unsustainable. (ii) In the light of the various judgment held that there was no warrant for reopening the assessment in exercise of the power conferred u/s 147.
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