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2022 (5) TMI 1091 - AT - Income TaxReopening of assessment u/s 147 - reopening made beyond four years - provision for bad and doubtful debtor shown under the head administration expense in the profit and loss account are to be added to the income beside considering the same for the purpose of computing book profit u/s 115JB and the assessee has wrongly been allowed deduction u/s 80IA(4)(iii) in respect of Salarpuria Touchstone project - HELD THAT:- We note that on the basis of above reasons recorded that all the information were duly disclosed in the books of account, audited financial statement and return of income filed by the assessee and it cannot be construed as in respect of which the assessee has not truly and fully disclosed all the material facts leading to escapement of income. In fact, the assessee has disclosed all the material facts in respect of two items on the basis of which the AO formed his belief u/s 148 of the Act. Under these facts and circumstances, we find merits in the contentions of the Ld. A.R. that the reopening was made in violation to provisions as contained in first proviso to section 147 of the act which stipulates that reopening cannot be made where the assessment was framed u/s 143(3) after a period of four years from the end of relevant assessment year if the escapement of income has occurred due to nondisclosure of material facts by the assessee which led to the escapement of the income. In our considered opinion, the reopening of the assessment has been made incorrectly and in violation to 1st proviso to section 147 of the Act and therefore cannot be sustained. The case of the assessee finds support from the decision of co-ordinate bench in the case of Haldia Petrochemicals Ltd. [2021 (4) TMI 383 - ITAT KOLKATA] - Also in cases ORIENT CRAFT LTD. [2013 (1) TMI 177 - DELHI HIGH COURT], SOUND CASTING PVT. LTD [2012 (4) TMI 248 - BOMBAY HIGH COURT], TAO PUBLISHING (P.) LTD. [2015 (1) TMI 1162 - BOMBAY HIGH COURT] and HARYANA ACRYLIC MANUFACTURING COMPANY [2008 (11) TMI 2 - DELHI HIGH COURT] which held the reopening made beyond four years has to be in accordance with the first proviso to section 147 of the Act failing which the reopening as well as reassessment order are bad in law. We, therefore respectfully following the above legal position , quash the reassessment proceedings u/s 147 as well as the consequent order framed by the AO - Decided in favour of assessee.
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