TMI Blog2023 (2) TMI 1122X X X X Extracts X X X X X X X X Extracts X X X X ..... the expenses which had been reflected in the break-up under the head details of advertisement and sales promotion expenses while passing the final order of assessment, which reflects that the AO had applied its mind to the appellant s claim while passing the order under section 143(3) of the Act. The reasons do not disclose as to what material or fact was not disclosed by the assessee. It, therefore, clear that there was, in fact, a complete disclosure of all the primary material facts on the part of the petitioner and it cannot be said that there was any failure on the part of the petitioner to disclose fully and truly facts which were material and necessary for assessment. Thus notice impugned does not satisfy the jurisdictional requ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of the petitioner s products. As per the scheme, the petitioner had to enter into the agreement with dealers as regards sharing of costs incurred for setting up of the designated area for use and display of the petitioner s products. The costs incurred comprised of civil work, furniture and fittings, electrical fittings, signboards, advertisement material etc. It is stated that even though the petitioner incurred expenditure, on setting up of the stores, the stores continue to be belonged to the dealers. It is also stated that the costs incurred by the petitioner as its shares in the development of the Colour Idea Store would be debited to the profit and loss account as advertising and sales promotion expenses and claim as deduction in co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for A.Y. 2014-15 u/s 147 of the Income-tax Act, 1961 : The original return of income has been filed electronically on 27.11.2014 declaring total income at Rs.14,03,67,70,690/-. Subsequently, return of income was revised on 21.03.2016 declaring total income at Rs.13,82,57,02,410/-. The case of the assessee was selected for scrutiny under CASS and assessment under section 143(3) was completed on 19.12.2016 determining income at Rs.16,54,07,53,234/-. 2. During the assessment proceedings u/s 143(3) of the Act in AY 2015-16, it was seen that the assessee has incurred expenses of Rs.32,44,46,533/- towards Colour Idea Store and debited these expenses in the P L A/c. In A.Y. 2015,16. After thorough examination and verification during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o failure to disclose fully and truly any material fact necessary for the assessment which was a condition precedent for reopening the assessment in terms of section 148 of the Act. It is stated that based upon a similar reasoning, the respondents had sought to reopen assessment relevant to assessment year 2011-12 and 2012-13, was challenged in writ proceeding, which came to be allowed by virtue of judgment and order dated 17th January 2019 and 29th October 2021 and the proceedings were quashed. An SLP preferred against the said judgment and order too, is stated to have been dismissed by virtue of order dated 4th October 2019 and subsequently a review petition seeking review of the said order was also dismissed. 7. Counsel for the res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on and evidence. The reasons recorded must be based on evidence. The Assessing Officer, in the event of challenge to the reasons, must be able to justify the same based on material available on record. He must disclose in the reasons as to which fact or material was not disclosed by the assessee fully and truly necessary for assessment of that assessment year, so as to establish the vital link between the reasons and evidence. That vital link is the safeguard against arbitrary reopening of the concluded assessment. 10. From the record, it is clear that during the scrutiny assessment, the AO had sought from the petitioner the relevant details with regard to the advertisement and sales promotion expenses which details were furnished by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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