TMI Blog2017 (11) TMI 1737X X X X Extracts X X X X X X X X Extracts X X X X ..... 'ble Supreme Court in case of CIT Vs. Corporation Bank [1999 (2) TMI 16 - SUPREME COURT]. Thus assessee has not failed to disclose fully and truly the material facts Addition on account of change in method appropriating partial recovery with respect to NPA account where suits filed or accounts are compromised - Held that:- In the present case the revenue has failed to establish that how the change in the method of accounting is not permissible. The finding of fact which was arrived at by the Commissioner (Appeals) was that the change in the method of accounting was bona fide and it has been followed regularly and consistently. The changed method has been held to be a better method for preparing and presenting financial statements of inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5A Income Tax Act, 1961. 3. The brief facts of the case are that the assessee is a public sector bank which filed its return of income on 30.09.2008 declared loss of ₹ 14.53 crores. It was assessed u/s 143(3) on 23.12.2010 at a loss of ₹ 10.12 lacs. 4. Later on it was observed by the AO that there is change in the accounting policy with respect to recovery of non-performing advance where assessee has filled suits, decree or compromised accounts. Therefore, according to the LD AO it has resulted into escapement of income of ₹ 10.43 crores. Hence, notice u/s 148 was issued on 19.03.2013. Admittedly, the notice was issued beyond four years from the end of the assessment. Consequently, the ld AO passed an assessment ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otes on accounts‟ of the assessee which was there at the time of original assessment also. The bank has disclosed all material facts to the LD AO at the time of original assessment. There was no failure on the part of the assessee to disclose fully and truly material fact of the computation of total income. This stand of the assessee is also supported by the order of the Hon'ble Supreme Court in case of CIT Vs. Corporation Bank 254 ITR 791. The Hon Supreme court held that Turning attention to the first question as regards the provisions under section 147(a) be it noted and as the facts depict, there is no failure on the part of the assessee in furnishing the particulars pertaining to the above noted sum as not recoverable for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal of the Revenue is against deletion of addition of ₹ 10.43 crores. It has been noted by the LD CIT (A) that the LD AO could not point out that how the change in the accounting policy is not permitted. It was however submitted that in earlier years the assessee was following the system of appropriating recovery towards principal in the case of non-performing assets such as suits filed and compromised accounts. Now in the case of the partial recovery also it was to be appropriated towards the principle. Therefore, it has brought uniformity in appropriation of recovery in all NPA accounts. Furthermore, the choice of method of account always lies with the assessee and should be accepted by the revenue followed regularly by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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