9911796707
TMI Blog2020 (10) TMI 997X X X X Extracts X X X X X X X X Extracts X X X X ..... owed the appeal and held that re-assessment order under Sections 147 - 148 of the Income Tax Act, 1961 for the Assessment Year 1997-1998 was not justified. The relevant observations of the learned Tribunal in the impugned order are quoted below for ready reference: "8.The assessee has furnished all the details of income in the profit and loss account and it was considered by the assessing officer u/s.143(3) in the scrutiny assessment. There is no failure on the part of the assessee to disclose fully and truly all material facts for the purpose of assessment for this assessment year. When the entire facts were made available to the assessing officer at the time of original assignment, he should have made use of the materials available befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest due from its subsidiary company in the notes attached to the statement of accounts clarifying that it would account for such interest on receipt basis, reopening of assessment merely on the basis of audit objection was bad in law in the absence of any other material. In the present case before us also, reopening was made by the assessing officer merely on the basis of audit objection only. In our opinion, reopening is invalid since the assessee has disclosed truly and fully all material facts regarding the method of recognition of income in the note attached to the statement of accounts wherein it was clarified that it would spread the income over a period of 20 years. Accordingly, we annul the reassessment and allow the C.O. raised by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, even though the revenue of the State is involved in the present appeal filed by the Revenue may be more than Rs. 1 Crore, the limit prescribed in the CBDE Circular for withdrawal of the appeal, we do not find any merit in the present appeal filed by the Revenue for the reason that the learned Tribunal has categorically held that there was no failure on the part of the assessee, but disclosed the relevant facts and therefore, merely on the basis of the audit objection or change of opinion and re-assessment under Sections 147 & 148 of the Income Tax Act, 1961, could not be made beyond the period of four years from the end of the relevant assessment year 1997-98. 5.In the present case, the notice under Section 148 of the Income Tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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