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2023 (11) TMI 595 - BOMBAY HIGH COURTReopening of assessment - Reasons to believe - assessee case was selected for scrutiny under CASS and the assessment was completed u/s 143(3) after accepting the returned income - HELD THAT:- This was a case where petitioner had filed its return of income for Assessment Year 2014-15 admitting NIL income. The proviso to Section 147 provides that notice to reopen can be issued only if there is failure to truly and fully disclosed if the notice is being issued after the expiry of four years from the end of relevant assessment year. The assessment year is A.Y. 2014-15 and the notice is dated 30th March 2021. Hence the proviso will apply. From the reasons as quoted above, it is quite clear that the material on which A.O has relied upon are those available from the documents filed by petitioner. The reasons state “As seen from the Profit & Loss Account (Notes 26 – Movement Employee Benefits Expenses), assessee had debited provision for employee related disputes to the extent of Rs. 3,10,00,000. However, in the statement of computation of income, while arriving at the income as per normal provisions, the remaining provision debited in the Profit & Loss Account of Rs. 30,00,000 needs to be brought to tax.” In the affidavit in reply filed through one Ms. R.P. Anuradha affirmed on 30th October 2023 it is admitted that assessee has furnished complete details, information, documentary evidences and explanation as required by the learned A.O. during the assessment proceedings but strangely it is stated that the requisite material fact as noted in the reasons for reopening were embedded in such a manner that material evidence could not be discovered by the A.O. This is nothing but a bald statement because the reasons itself indicates that the material fact was picked up from the Profit & Loss Account Notes 26 and the statement of computation of income while arriving at the income as per normal provisions. The reasons does not also state that the material fact was embedded in such a manner that material evidence could not be discovered. It is settled law that what is not there in the reasons cannot be improved upon in the affidavit or during the course of argument. Decided in favour of assessee.
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