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2022 (5) TMI 941 - AT - Income TaxReopening of assessment u/s 147 - Notice beyond period of four years - disallowance of prior period expenses and MAT - Whether the assessee disclosed fully and truly all material facts necessary for the assessment? - HELD THAT:- In the present case, the financial statements for year ended March 31, 2010 disclosed the prior period expenses on the face of the profit and loss account itself as well as the break- up of the same is depicted at Schedule 16 of the financial statements - Tax Audit Report (TAR) in Form 3CD for AY 2010-11 of TAR and attachment 9 of TAR depict the prior period expenses -. A copy of the TAR has been duly furnished before the AO vide Annexure-4 of submission dated May 30, 2013. The computation of Income including the MAT (‘Minimum Alternative Tax’) computation under section 115JB of the Act along with Form 29B for AY 2010-11 depicts that the Company had disallowed the prior period expense in the normal computation of income. Further, the same is not disallowed in the MAT computation in line with Form 29B for the subject year. The said documents been duly furnished before the AO vide Annexure-2 and Annexure-3A of the submission dated May 30, 2013. Thus, in the present case, there is no failure on the part of the Appellant to file its Return of Income. Further, the Appellant has disclosed fully and truly all material facts necessary for his assessment. The facts have been duly disclosed in the Tax Audit Report and vide the Profit and Loss Account. Hence keeping in view the proviso to the section 147, the reassessment proceedings initiated under section 147 of the Income Tax Act 1961 beyond a period of four years are bad in law and deserve to be quashed. Appeal of assessee allowed.
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