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2013 (1) TMI 679 - HC - Income TaxReopening of assessment - Incorrect allowance of deduction in respect of royalty received from foreign enterprise, deduction in respect of export profits,profit and gains from newly established undertakings, profit and gains from newly established industrial undertakings & non-business expenditure - Held that:- Insofar as all the purported reasons other than the reason pertaining to club expenses are concerned, specific queries had been raised and the AO had considered the material placed by the petitioner before him as claim in the return supported by a relevant certificates has been submitted by assessee. As regards club expenses, Mr Maratha appearing on behalf of the respondents states that since no specific query had been raised, Explanation 1 would get triggered. But no agreement with this submission this is so because the club expenses were specifically mentioned at serial No. 17(d) of the tax audit report in Form No. 3CD which was annexed along with the return. This was a clear statutory disclosure on the part of the assessee with regard to the claim of club expenditure. It was not a piece of evidence which was hidden in some books of accounts from which the Assessing Officer could have possibly, with due diligence, discovered the same. On the contrary, this was material which was placed before the Assessing Officer along with the return which the Assessing Officer was duty bound to go through before completing the assessment. Clearly this does not fall in the category of material which is referred to in Explanation 1 to Section 147 of the said Act. Thus this is clearly not a case of failure on the part of the assessee to fully and truly disclose all material facts necessary for the assessment. This is of material significance because the notice under Section 148 has been issued after expiry of four years from the end of the relevant assessment year. Therefore, the notice is time barred. Apart from this,it amounts to a mere change of opinion - in favour of assessee.
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