TMI Blog2019 (1) TMI 1416X X X X Extracts X X X X X X X X Extracts X X X X ..... ice under Section 143(3) of the Act beyond a period of four years from the end of the relevant Assessment Year in terms of the proviso to Section 147 of the Act. In the above facts, no fault can be found with the setting aside of the reopening notice dated 28th March, 2011 issued in respect of an assessment completed under section 143(3) of the Act beyond the period of four years from the end of the Assessment Year 2004-05 in the absence of failure to disclose all material facts truly and fully in the regular assessment proceedings. Thus, no fault can be found with the impugned order of the Tribunal as it only follows the settled law. - Decided in favour of assessee - Income Tax Appeal No. 1464 of 2016 - - - Dated:- 22-1-2019 - AKIL KURE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ain and this is not in accordance with AS-11(7). Directors in their report had mentioned that due to continuous loss over years, the amounts payable but the company for discharging the liabilities will be a difficult task and the revaluation of exchange gain will result in notional income and hence decided that it was not necessary to revalue the import liability in terms of exchange valuation. 3. The action of the assessee is not correct, it is necessary for the assessee to provide for the gain or loss due to exchange variation at the end of the year. In this regard, reliance is placed on the decision of the Hon'ble S.C. in the case of CIT v/s. Canara Bank Ltd.,wherein it was held that by virtue of change in exchange rate of curre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ords the fact that this reopening notice was issued beyond the period of four years from the end of the relevant Assessment Year, where assessment had been completed under Section 143(3) of the Act. This coupled with the fact that the reasons recorded in support of the impugned notice very clearly bring out the fact that the reopening notice was not on the basis of any fresh tangible material in the hands of the Assessing Officer but on the perusal of the record which is available on record with the Assessing Officer. In the aforesaid facts, the Tribunal held that the impugned notice is without jurisdiction as it would be hit by first proviso to Section 147 of the Act viz. No failure to disclose fully and truly all material facts necessary ..... X X X X Extracts X X X X X X X X Extracts X X X X
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