TMI Blog2013 (12) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... f total income along with note, statement of computation of income u/s 115JB of the Act, audit report u/s 115JB computing the book profit of the company - There is no failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment – In fact the Revenue has failed to prove that the assessee has not disclosed all the relevant material – Following Mrs. Parveen P. Bharucha vs. Dy. CIT [2013 (1) TMI 295 - Bombay High Court] - Fresh application of mind by the Officer on the same set of facts amounts to a change of opinion and does not warrant reopening - Decided against Revenue. - ITA No. 5644/Mum/2010 - - - Dated:- 18-1-2013 - Dinesh Kumar Agarwal And Rajendra, JJ. For the Appellant : Shri M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r reopening of the assessment, added the excess allowance of bad debts to the extent of Rs. 1,81,02,263/- to the income of the assessee, disallowed the expenses incurred for earning exempt income Rs. 7,31,444/- and did not allow bad debts provision written back Rs. 9,64,83,244/- on the ground that the same are un-ascertained liabilities and accordingly completed the assessment at a loss of Rs. 10,67,13,404/- under the normal provisions of the Act and on the adjusted book profit Rs. 9,81,30,434/- u/s 115JB of the Act vide assessment order dtd. 22-12- 2008 passed u/s 143(3) r.w.s. 147 of the Act. On appeal, the ld. CIT(A) while partly allowing the appeal quashed the re-assessment proceeding, deleted the addition of Rs. 1,81,02,263/- made on a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) was not justified in holding that the re-assessment u/s 143 of the Act is bad in law. He, therefore, submits that the order passed by the A.O. be restored. 6. On the other hand, the ld. Counsel for the assessee submits that since all the material facts have been disclosed by the assessee during the assessment proceeding inasmuch as the assessee has filed its explanation on the query raised by the A.O., which are subject matter of re-assessment proceeding, appearing at page 1 to 47 of the assessee s paper book, therefore, the ld. CIT(A) was fully justified in quashing the re-assessment proceeding u/s 147/148 of the Act. He, therefore, submits that the order passed by the ld. CIT(A) be upheld. 7. We have carefully considered the subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.2.30 crore involving tax effect of Rs.1,11 crore. 2. Further as per provision of section 115 JB of IT. Act, where the income tax payable on the total income as computed under the normal provisions of the Act is less than 7.5 per cent of the book profit, such book profit shall be deemed to be the total income of the assessee and the assessee is liable to pay income tax at the rate of 7.5 percent on such total income. In the case of the asessee, assessment u/s.143(3) was made under normal provisions of the Act, by determining the income of the assessee as Nil and no income was determined under section 115JB. Book profit u/s. ll5JB in this case works out to Rs.12.30 crore. By not determining the income under section 115JB, it h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee. In this view of the matter we are of the view that the A.O. while completing the original assessment has formed an opinion and allowed the claim of the assessee. It is not the case of the Revenue that there is any failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment. 8. In Asian Paints Ltd. vs. Dy. CIT (2004) 308 ITR 195 (Bom) it has been held that fresh application of mind by the Assessing Officer to the same set of facts amounts to change of opinion and does not warrant reopening. 9. Recently in Mrs. Parveen P. Bharucha vs. Dy. CIT (2012) 348 ITR 325 (Bom) it has been held as under (Headnote):- Held, allowing the petition, that while granting the benefit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t disclosed all the relevant material or the A.O. has not considered the same at the time of original assessment proceeding, we respectfully following the ratio of the above decisions hold that the ld. CIT(A) was fully justified in quashing the reassessment proceeding initiated u/s 147/148 of the Act. The grounds taken by the Revenue are, therefore, rejected. 11. Since we have upheld the order passed by the ld. CIT(A) in quashing the re-assessment proceeding, we do not consider it necessary to adjudicate on the ground raised by the Revenue on merits of the case and accordingly the other grounds taken by the Revenue are rejected. C.O. No. 120/Mum/2011 12. All the grounds taken by the assessee in the C.O. are on merits, therefore, keepi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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