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2018 (12) TMI 1445 - AT - Income TaxReopening of assessment - include diminution in the value of investment and consequently to increase the assessed book profit to this extent - MAT computation - reopening after the expiry of four years from the end of the assessment year - Held that:- The expression ‘disclose’ in first proviso postulates a pre-existing knowledge. A person can possibly disclose something, he is privy to. A retrospective amendment of law cannot be visualized by an assessee which may lead to any kind of failure to disclose. Therefore, the conditions prescribed in the first proviso cannot be said to be fulfilled and thus the action of the AO u/s 147 after the expiry of four years from the end of the assessment year in question is clearly time barred and therefore, vitiated in law. AO initiated proceedings under s.147 read with proviso thereof solely on the grounds of retrospective insertion of clause (i) to Explanation 1 to Section 115JB of the Act whereby provisions for diminution in the value of any asset is required to be added to the book profit for the purposes of Section 115JB of the Act. As observed and as echoed in decision of Sadbhav Engineering Ltd. vs. DCIT [2014 (6) TMI 296 - GUJARAT HIGH COURT] and Vodafone West Ltd. vs. ACIT [2013 (7) TMI 536 - GUJARAT HIGH COURT], retrospective amendment in law does not give rise to any failure to disclose material facts as contemplated in the first proviso. Thus, apparently the order of the CIT(A) in setting aside the re assessment order based on an invalid notice under s.148 of the Act cannot be faulted in law. - decided against revenue
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