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2019 (6) TMI 612 - GUJARAT HIGH COURTReopening of assessment u/s 148 - allowability of write off of bad debts from export receivables during the pendency of the application for approval from RBI - HELD THAT:- The petitioner submitted all the required details called upon by the AO in respect of the claim of bad debts written off including the bad debts written off pertaining to export receivables. With respect to foreign debts, the petitioner was called upon to furnish RBI permission. The petitioner replied vide communication dated 21.10.2015 pointing out that the application for permission to write off the bad debts is already made to the Reserve Bank of India. The AO accepted the contention of the petitioner that upon application of RBI pending final approval, debts could be written off and the amount of bad debts written off was allowed and the AO did not make any addition on this ground in the original assessment. In view of the aforesaid undisputed facts emerging from the record, the respondent could not have formed a belief that the income chargeable to tax has been under assessed. With regard to writing off of bad debts from export receivables resulting into income escaping assessment within the meaning of section 147 the reassessment proceedings have been initiated merely on reviewing the same subject matter of original assessment proceedings amounting to assessing the same set of facts already available with the department which is mere change of opinion on part of the respondent. AO during the course of original assessment has formed an opinion that the bad debts from export receivables can be written off during the pendency of the application for approval from Reserve Bank of India and as such, the respondent could not have formed a different opinion that income has escaped assessment as the petitioner did not have permission from the Reserve Bank of India to write off the bad debts from the export receivables. Therefore, in facts of the present case, impugned notice u/s 148 is without jurisdiction and authority of law as the respondent has reopened the proceedings merely on the ground that from the material once a view earlier adopted was erroneous one, such facts cannot be a ground for reassessment. - Decided in favour of assessee.
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