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TMI Blog2022 (12) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... derabad (Tribunal) in I.T.A.No.1021/Hyd/2019 for the assessment year 2010-11. 3. Appellant has proposed the following questions as substantial questions of law: 1. Whether on the facts and in the circumstances of the case, the Tribunal is correct in upholding the orders of the Commissioner of Income Tax (Appeals) - 4? 2. Whether information devoid of corroborative evidence and supporting documents constitute true and full disclosure for the purpose of Section 147 of the Act? 3. Whether on the facts and in the circumstances of the case, the Tribunal is correct in not considering the fact that full details of 'cancellation & price revision' were not disclosed by the assessee during the original assessment proceedings and therefore th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner of Income Tax (Appeals) 4, Hyderabad (briefly referred to hereinafter as 'CIT (A)'). By the appellate order dated 30.03.2019, CIT (A) allowed the appeal of the respondent both on technical grounds as well as on merit. It was held that action of the assessing officer in reopening of assessment was bad in law; so also the addition of Rs.113,19,93,808.00 made on account of reversal of revenue due to price revision/cancellation. The same was accordingly directed to be deleted. It was held as follows: "8.9 From the above analysis it is clear that the appellant has reversed the revenue to the extent of Rs.40.76 crores on account of price revision which is forming part of earlier years revenue recognition to that extent has tabulated bel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... due to economic recession prevailing during the period and forcing the cancellations. On this issue the AO was of the view that such cancellations would benefit the appellant. These observations of the AO are not based on verifiable fact. It is a known fact in the real estate business during the times of recession most of the customers would like to take back the advances to the extent possible and even in few cases with interest on the advances given to the appellant. In such a scenario it would be improper to hold to the extreme view that cancellations will result in forfeiture of advances making no loss to the appellant. To maintain the reputation of the builder in the real estate market, it is a normal practice to instil confidence in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rected to be deleted." 7. Revenue preferred appeal before the Tribunal against the aforesaid order of CIT(A) dated 30.03.2019. By the order dated 07.09.2021, Tribunal dismissed the appeal of the revenue by upholding the order of CIT(A). Tribunal held as follows: "4. We have heard rival pleadings and perused the case file. We note first of all that the Assessing Officer recorded the following reasons for forming his opinion that the assessee's taxable income had escaped assessment: "it is gathered from the information available with this office that the assessee was debited an amount of Rs.113,19,93,808/- towards 'Reversal on account of cancellation and price revision; and finally reported a book loss of Rs.38,28,51,371/-. The reducti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... age by way of addition, deletion or substitution therein. We thus quote that to conclude that the impugned reopening has been rightly quashed by the CIT(A) as a mere change of opinion only. All this renders the latter issue on merits as academic. No other argument has been pressed before us." 8. Thus, according to the Tribunal, the reopening was initiated beyond the specified period of four years from the end of the relevant assessment year. In the light of Section 147(1) first proviso of the Act, Tribunal further noted that reopening of assessment is only permissible if the assessee had not disclosed all the relevant particulars fully and truly before the assessing officer. Relying on a decision of the Bombay High Court in Hindustan L ..... X X X X Extracts X X X X X X X X Extracts X X X X
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