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2015 (8) TMI 414 - AT - Income TaxReopening of the assessment u/ s 147 - amount wrongly claimed by the assessee being the amount written off which pertains to the development of software and forfeiture of registration charges of industrial land - CIT(A) quashed reopening - Held that:- The present case is pertaining to AY 2003-04 wherein the AO issued notice u/s 148 of the Act on 4.9.2009 which is beyond four years as the AO could have started proceedings u/s 147 of the Act after the end of four years from the end of 2003-04 i.e. proceedings of reopening of assessment could have been initiated by way of issuing notice u/s 148 of the Act by 31.3.2008. Admittedly and undisputedly, the AO had issued notice on 4.9.2009 perhaps by invoking and applying first proviso to section 147 of the Act wherein the assessment can be reopened and notice u/s 147 of the Act can be issued only by reason of the failure on the part of assessee to disclose fully and truly all material facts pertaining to the issue which has been picked up by the AO for recording reasons for issuance of notice u/s 148 of the Act. In the present case, the AO has picked up the issue of written off amount of ₹ 23,43,179 pertaining to amount advanced to M/s Shonkh Technologies International Ltd. and the amount forfeited by Greater Noida Industrial Authority towards aborted project. As we have noted above, the assessee furnished entire details on this issue vide its submissions dated 26.2.2006 during the original assessment proceedings which have been placed by the assessee in its paper book pages 83 to 90. In this situation, the AO was not correct and justified in holding that the assessee did not truly and fully disclose all material facts relevant to the impugned issue of written off amount of ₹ 23,43,179/- during original assessment proceedings. Therefore, the case of the AO goes out of the ambit of first proviso to section 147 of the Act. CIT(A) was quite justified and correct in granting relief for the assessee by allowing legal contention and ground of the assessee against issuance of notice u/s 148 of the Act beyond the prescribed period of four years specifically when there was no failure on the part of assessee to disclose fully and truly material facts relevant to the issue of written off debts - Decided in favour of assessee.
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