TMI Blog2015 (10) TMI 1610X X X X Extracts X X X X X X X X Extracts X X X X ..... e with the AO while completing the assessment u/s 143(3) and while issuing the notice u/s 154 dated 06/11/2008, all the material facts were available with the AO. The reopening is therefore in contravention of the first proviso to section 147. Since there is no new material brought on record by the AO nor any failure on the part of the assessee to disclose primary or material facts the reopening cannot be considered valid. - Decided in favour of assessee. - ITA No. 264/Bang/2014 - - - Dated:- 11-6-2015 - Pramod Kumar, AM And P Madhavi Devi, JM,JJ. For the Appellant : Shri P Dhivahar, JCIT(DR) For the Respondent : Shri Chandrashekar, Adv. ORDER Per Smt. P Madhavi Devi,JM. This appeal by the revenue is against the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee to disclose fully and truly all the material facts necessary for assessment of assessee's income, the reopening is not valid as is the case before us. 5. Having regard to the rival contentions and the material on record, we find that the assessment year before us is 2005- 06 whereas the notice u/s 148 was issued on 15/3/2012, i.e. after the lapse of more than 4 years from the end of the relevant assessment year. Therefore, as rightly held by the CIT(A), unless there is failure on the part of the assessee to disclose fully and truly all the material facts necessary for the assessment of its income, the assessment completed u/s 143(3) cannot be reopened. The CIT(A), in paras 3.4 to 3.6 of his order has clearly brought out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idated in full dues to lending institutions. Consequently company could avail waiver of interest including penal interest levied earlier amounting to ₹ 3,49,85,584/-. It is also pointed out that in the computation of income the waiver of interest on term loans amounting to ₹ 3,49,85,584/- has been separately mentioned and reduce d from the total income. Further, in the computation in form 29B relating to provisions of section 115JB the interest on term loan waived has been reduced. This has been part of the return filed before the AO. It is, therefore, evident that the assessee has disclosed all the relevant facts for the purpose of the assessment. It is also seen that on 06/11/2008 a notice u/s 154 has been issued by the AO pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollows: 'The assessment order u/s 143(3) for AY 2005-06 was concluded on 30/11/2007 on a total income of Rs.Nil. The assessee company while computing the profit u/s 115JB has reduced a sum of ₹ 3,49,35,584/- being the interest waived by financial institutions. As per the section 115JB, there is no provision to reduce the interest as waived by the financial institutions. Thus, an amount of ₹ 3,49,35,584/- was under assessed. Therefore, I have reason to believe that income to the extent of ₹ 3,49,35,584/- has escaped assessment within the meaning of s 147 of the IT Act, 1961.' 3.6 It is evident from the above reasons that there is no imputation of any failure by the assessee to disclose the relevant material fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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