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2009 (3) TMI 594 - AT - Income TaxIncome escaping assessment - In the assessment order passed under s. 147 on 8th Feb., 2006, the total income was assessed at5,52,14,264 and the book profit under s. 115JA was computed at ₹ 7,03,89,722 - s. 147 of the Act does not postulate conferment of power upon the AO to initiate reassessment proceedings upon a mere change of opinion - Where the initiation of proceeding under s. 147 takes place after the expiry of four years from the end of the relevant assessment year, the proviso to s. 147 is attracted and no action can be taken under s. 147 unless such income has escaped assessment by reason of the failure on the part of the assessee to disclose fully and truly all material facts for his assessment for the assessment year. - the said period of four years has not expired, the conduct of the assessee regarding disclosure of material facts need not be the basis for initiating the proceedings and they can be commenced if the AO has 'reason to believe' that the income has escaped assessment notwithstanding that there was full disclosure of material facts on record. - It was held that the impugned notice under s. 148 was issued within a period of four years from the end of the relevant assessment year Section 72A - The accumulated loss and the unabsorbed depreciation of the amalgamating company shall be deemed to be the loss/depreciation of the amalgamated company for the previous year in which the amalgamation takes place - AO reduced the net profit accordingly - he language of s. 72A(1) and of cl. (iii) of Explanation to s. 115JA(1), as reproduced above, are unambiguous and leave no scope for doubt. The accounts prepared under the Companies Act must be modified, wherever necessary, to comply with the provisions of s. 115JA of the Act, for the computation of minimum alternative tax. This is precisely what the AO did in this case.Accordingly the appeal is dismissed
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