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2022 (2) TMI 1039 - BOMBAY HIGH COURTReopening of assessment u/s 147 - True and full disclosure of all material facts - HELD THAT:- There has been a full and true disclosure of the material facts by petitioner. It may be noted at the cost of repetition that in the recorded reasons, it has not been alleged that there has been any failure on the part of the assessee to make a full and true disclosure of the material facts. AO has also asked petitioner to specifically explain the facts relating to the sum debited to the P&L Account towards provisions for customs duty and why a disallowance should not be made under Section 143(3) - Petitioner has explained the full facts vide its letter dated 14th November 2007. Amount has been offered to tax by petitioner in the succeeding Assessment Year 2006 – 2007 and assessed. It is only thereafter the Assessing Officer has passed the assessment order dated 30th November 2007 in which he has thoroughly discussed the explanation of the assessee on the issue of provision for customs duty in para 5 of the assessment order and held that the sum was disallowable under Section 143(b) of the Act on the ground that there was no actual payment. In computing the total income under the normal provisions of the Act, the Assessing Officer started from the business income as returned by petitioner, which included self-disallowance debited to the P&L Account towards advance doubtful of recovery and provision for non-moving inventory, respectively. Therefore there has been a true and full disclosure of all material facts by petitioner. It is true that in the assessment order self-disallowances have not been discussed but at the same time it has been a subject of consideration during the assessment proceedings since the Assessing Officer has started from the business income as returned by petitioner, which included self-disallowances debited to the P&L Account. Therefore, there can never be escapement of income. Respondent no.1 Assessing Officer also applied his mind to the computation of “book profits” under Section 115JB of the Act. In the assessment order, respondent no.1 has held that petitioner’s deferred tax liability of ₹ 512,47,42,000/- had to be added to the book profits. He computed the book profit at ₹ 140,362,63,678/- and computed total tax payable by petitioner at ₹ 110,06,18,525/-. Therefore, in our view, there has been a full and true disclosure of the material facts by petitioner and it is a clear case of change of opinion to take a different view relying on the same set of documents. Change in opinion cannot construe “reason to believe”. - Decided in favour of assessee.
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