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2018 (11) TMI 646 - HC - Income TaxReopening of assessment - change in method of accounting in relation to NPAs - Held that:- The concurrent findings of both the CIT (Appeals) and the Tribunal is that this new method of accounting was duly notified and recorded in para 7.3 of schedule 17 of the audited accounts for the assessment year 2006-2007. This factual position is not disputed or factually challenged. AO had noticed this objection but did not dwell and specifically examine and answer the same in the re-assessment order. There was quietus on the said aspect by the Assessing Officer, who had impliedly admitted the factual position of full and true disclosure of material facts. This is not a case where inference or interpretation on the basis of the note was to be drawn. The new and amended method of accounting for NPAs was declared and notified in clear words. We therefore do not see any reason and ground to interfere with the finding on absence of failure to disclose full and true material facts. Provision for fraud cases treated as expenditure in the profit and loss account - The second reason for re-opening, which is not pressed, this claim was accepted during the course of original assessment proceedings. CIT(Appeals) had, on the said aspect, observed that a specific query was raised by the AO vide item No.16 of questionnaire dated 26.5.2008, to which reply dated 20.6.2008 was furnished by the respondent/assessee. CIT(Appeals) had accordingly held that the ground would not be a valid and good reason to reopen the concluded assessment. The Revenue has accepted the decision of the Commissioner of Income Tax(Appeals) on the second aspect and did not challenge this finding.
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