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TMI Blog2013 (12) TMI 1564X X X X Extracts X X X X X X X X Extracts X X X X ..... nces of the case and in law, the Commissioner of Income Tax (Appeals) erred in upholding the action of the assessing officer in initiating proceedings under section 147 of the Act after the expiry of four years from the end of the relevant assessment year, without appreciating that the same were barred by limitation in terms of proviso to that section considering that (a) the original assessment for impugned year was completed under section 143(3) of the Act, and (b) there was no failure on the part of the appellant to disclose fully and truly all material facts necessary for assessment. 2.1 That on the facts and circumstances of the case and in law, the Commissioner of Income Tax(A) erred in holding that in absence of disclosure by way of note in the return form and report under section 11 SJB of the Act, the appellant failed to disclose fully and truly all material facts necessary for assessment. 3. That on the facts and circumstances of the case and in law, (he Commissioner of Income Tax (Appeals) erred in holding the reasons recorded by the assessing officer as valid, without appreciating that the same did not state any failure on part of the appellant in disclosing materia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e I. T. Act. 1961. Approval of Commissioner of Income Tax, New Delhi is solicited hereby u/s 151 (1) of the I.T. Act, 1961." 4. The assessee challenged the initiation of reassessment proceedings and notice u/s 148 of the Act. The Assessing Officer rejected the contentions of the assessee and held that in view of Explanation 1(i) to section 115JB, any amount set aside as provisions for diminution in the value of any asset has been inserted with the Finance Act 2009 with retrospective effect from 04.01.2001 and as per Explanation 1(b) and (c), any amount carried to any reserve or set aside to provisions made for meeting liabilities, other than ascertained liabilities is to be added to the book profits. Consequently, the Assessing Officer made an addition of Rs. 12,05,877/- on account of diminution in the value of assets and another addition of Rs. 1,30,19,784/- on account of provision of doubtful debts and advances. 5. Aggrieved, the assessee preferred an appeal before the Commissioner of Income Tax(A) against above reassessment u/s 147 and 148 of the Act and addition made therein. The Commissioner of Income Tax(A) considered various decisions and citations of Hon'ble Supreme Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... initiating proceedings u/s 147 of the Act after expiry of 4 years without appreciating that the same were barred by limitation in terms of proviso attached to section 147 of the Act. He further contended that the original assessment for the year under consideration was completed u/s 143(3) of the Act and there was no failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment. 7. On behalf of the assessee it was also contended that the Commissioner of Income Tax(A) erred in holding that in absence of disclosure by way of note in the written form and report u/s 115JB of the Act, the assessee failed to disclose fully and truly all material facts necessary for the assessment. It was also contended on behalf of the assessee that the Commissioner of Income Tax(A) erred in holding the reasons recorded by the Assessing Officer as valid ignoring the fact that the reasons recorded by Assessing Officer for reopening of assessment state any failure on the part of assessee in disclosing material facts. 8. Replying to the above, ld. DR submitted that the assessee mainly relied on the return filed in Form No. 1 and the report u/s 115JB in For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alleged to have escaped assessment if original assessment was made u/s 143(3) of the Act. Their lordships also held that so long as the assessee has furnished full and true particulars at the time of original assessment and so long as the assessment order is framed u/s 143(3) of the Act, it matters little that the Assessing Officer did not ask any question or query with respect to one entry or note but had raised queries and questions on the other aspect. In this decision of full bench, their lordships also held that section 114(e) of the Evidence Act 1972 can be applied to an assessment order framed u/s 143(3) of the Act provided that there has been a full and true disclosure of material and primary facts at the time of original assessment. In such a case, if the assessment is reopened in respect of a matter covered by the disclosure, it would amount to change of opinion. 10. In the present case, from the Profit and loss account (PB page no. 24- 36), we observe that the assessee has given all details pertaining to its claim. From computation of total income at page 15 of the paper book, we observe that the assessee has clearly shown the amount of diminution in the value of invest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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