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2017 (6) TMI 1358 - AT - Income TaxValidity of reopening of assessment u/s 147 - addition on account of actuarial surplus - change of opinion - Whether A.O. has not brought any tangible materials on record to indicate that there was an omission or failure on the part of the assessee company to disclose fully and truly all material facts necessary for the assessment - HELD THAT:- As during the assessment proceedings the assessee furnished actuarial report Form-I, which shows the negative reserve. The AO made the addition of ₹ 81,000/- during the original assessment proceeding on account of actuarial surplus. The negative reserve was a part of the documents furnished during the assessment. Thus, it cannot be said that there was non-disclosure of material fact relevant for assessment. The assessing officer while passing the assessment order, the AO referred the actuarial report as reflected in para-2 of assessment order passed under section 143(3) - thus, it is not the case where the assessing officer has not made inquiry in respect of negative reserve, which has been shown in report under Form-I (Actuarial Report). After examining the Actuarial Report made the addition of ₹ 81,000/-, while passing the order of assessment. The assessment order was passed with due application of mind. The assessing officer has not brought any tangible material on record to show that there was any failure on the part of assessee to disclose fully and truly all material on record necessary for assessment. As per our considered view, it was merely a change of opinion of assessing officer. On merit we have seen that similar issue arose in AY 2005-06 and the assessee filed appeal before Tribunal. The Tribunal on the basis of order of High Court in ICICI Prudential Life Insurance Co [2015 (7) TMI 1259 - BOMBAY HIGH COURT] remanded the issue to the file of AO - The AO in pursuance of order of Tribunal deleted the additions on account of negative reserve its order. - Decided against revenue.
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