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2018 (8) TMI 1780 - GUJARAT HIGH COURTReopening of assessment - notice has been issued beyond a period of four years from the end of relevant assessment year - treatment given by the assessee to subsidy was that such amount was directly credited to Capital Reserve account by the assessee which resulted into non consideration of such amount for computation of assessee's book profit - Assessee had treated the Government grants as promoter's contribution and credited to Capital Reserve account and treated as part of shareholders' funds - HELD THAT:- The assessee had treated the Government grants as promoter's contribution and credited to Capital Reserve account and treated as part of shareholders' funds. Whatever be the correctness of such accounting treatment, the assessee had made the full disclosure about the treatment given to such subsidy and the reason therefore. During the course of assessment proceedings also, this aspect had further come to the notice of the AO. Thus not only there was sufficient disclosure in the return filed by the assessee with respect to the entry in question, this was also noticed by the AO during the scrutiny assessment. If therefore, the Assessing Officer had any doubt or dispute about the manner in which the assessee treated such subsidy, it was always open for him and in fact, required of him to object then. In any case, reopening of assessment beyond a period of four years would not be permissible under such circumstances.- Decided in favour of assessee
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