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2010 (5) TMI 688 - ITAT AHMEDABADReopening of assessment – beyond the period of 4 years from the end of the relevant assessment year – change of opinion - disallowing the claim of bad debt under section 36(1)(vii) – Held that:- Reopening of the assessment after expiry of 4 years from the end of the relevant assessment year and the conditions of the first proviso to section 147 of the Income-tax Act have not been satisfied by the Assessing Officer in this case - assessee disclosed all primary facts before the Assessing Officer at the time of original assessment under section 143(3) of the Income-tax Act regarding claim of bad debt. The Assessing Officer after examining the issue accepted the claim of the assessee. Therefore, it is clear case of mere change of opinion for reopening of assessment which is bad in law - assessee has written off the bad debt as irrecoverable in its account - initiation of proceedings under section 147 of the Income-tax Act is not in accordance with law - Assessing Officer, therefore, was not justified in initiating the reassessment proceedings - Assessing Officer was not justified in making the disallowance on account of bad debt – in favor of assessee
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