TMI Blog2013 (12) TMI 1564X X X X Extracts X X X X X X X X Extracts X X X X ..... he order of the Commissioner of Income Tax(A)-19, New Delhi dated 17.1.2013 in Appeal No. 302/2011-12 for AY 2004-05. 2. The assessee has raised grounds no. 1 to 3 challenging the impugned order by which the action of the Assessing Officer initiating reassessment proceedings u/s 147 and 148 of the Act has been upheld, which reads as under:- 1. That on the facts and circumstances of the case and in law, the Commissioner of Income Tax (Appeals) erred in not holding that the order passed by the assessing officer under section 147/143(3) of the Income-tax Act. 1961 ('the Act') is beyond jurisdiction, bad in law and void-ab-initio. 2. That on the facts and circumstances 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of the Act Computing the book profit of the company provision of doubtful, debts, and advances of ₹ 1,30,19,784/- and diminutions in the value of investments for ₹ 12,05,877/- were not added to net profit by the assessee. This failure by the assessee resulted in under assessment of income by ₹ 1,42,25,661/- with consequent short levy of tax of ₹ 11,59,211/- including interest. 3. Therefore, I have reason to believe that income to the extent of ₹ 1,42,25,661/- has escaped assessment on account of the assessee not disclosing fully and truly all material facts necessary for the assessment proceedings at the time of assessment u/s 143(3). Hence, the assessment proceedings need to be reopened u/s 147 of the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to section 147. Reopening of assessment is therefore, justified and is upheld. The Grounds are dismissed. 6. Now, the aggrieved assessee is before this Tribunal in this second appeal challenging the initiation of reassessment. We have heard rival arguments of both the parties and carefully perused the record including Paper Book of the assessee as well as citations relied by both the parties. The ld. counsel of the assessee submitted that the Commissioner of Income Tax(A) erred in upholding the action of the Assessing Officer which initiated the reassessment proceedings which were beyond jurisdiction, bad in law and void ab initio. The counsel further submitted that the Commissioner of Income Tax(A) erred in upholding the action of the Assessing Officer in 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 assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee pointed out that there should be no pick and choose. The ratio of the judgment can only be considered from entire judgment. Ld. counsel of the assessee has drawn our attention towards para 39 of the above judgment wherein it has been held that the Assessing Officer must have applied his mind on the entry claim or deduction etc. and it may be apparent and obvious to hold that the officer would not have gone into the said question or applied his mind. Speaking for the full bench of the Hon ble Delhi High Court from paras 42, the full bench also held that the assessment cannot be validly reopened u/s 147 of the Act even within four years if the assessee had furnished full and true particulars at the time of original assessment with reference to the income 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 queri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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