9911796707
TMI Blog2025 (3) TMI 1016X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 (3) of the Act. This petition was admitted on 13 April 2016 and the impugned notice was stayed. 2. On 23 September 2008, the Petitioner filed its return of income along with a profit and loss account in which the claim of expenses on account of technical literature and books, gift articles and conference, training and refresher course expenses aggregating to Rs. 2, 14, 64, 363/- was disclosed. The said return of income was selected for scrutiny assessment, and various details were called for, including more information concerning gift articles, technical literature and conference expenses. The Petitioner, by various letters, filed the details on these very issues. On 30 November 2010, an assessment order under Section 143 (3) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e relied upon the decision of the Supreme Court in the case of Apex Laboratories (P) Ltd. vs. Deputy Commissioner of Income-tax LTU (2022) 135 taxmann.com 286 (SC). He further submitted that very same issue for very same assessment year had come up for consideration before the Coordinate Bench of this Court in the case of Abbott India Ltd. vs. Assistant Commissioner of Income-tax (2023) 157 taxmann.com 423 (Bombay) and this Court had quashed the reassessment proceedings. He, therefore, submitted that the impugned notice be quashed and set aside. 6. Mr. Suresh Kumar, learned counsel for the Respondent, submitted that the Petitioner did not disclose during the assessment proceedings to whom the gifts were given and, therefore, there was a fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee filed its return of income on 23/09/2008 declaring total income at Rs. 3, 69, 48, 780/- computed under normal provisions of the Act and book profit of Rs. 4, 45, 56, 287/- computed under Sec. 115JB of the Act. The total income of the assessee was assessed at Rs. 3, 92, 68, 720/- and book profit at Rs. 4, 45, 56, 287/- vide order passed u/s 143 (3) of the Act, dated 30/11/2010. It has come to notice of this office that the assessee has claimed total expenditure of Rs. 214.64 Lakh on account of Technical Literatures & Booklets of Rs.18.61 Lakh, Gift Article of Rs. 45.81 Lakh and Conference, Training, Recruitment and Refresher Course Expense of Rs. 150.22 Lakh includes expenses related to Gift articles, Travel facility, Hospi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch are necessary for its assessment. Therefore, I have reasons to believe that claim of Rs. 2, 13, 72, 000 being expenses related to Gift articles, Travel facility, Hospitality, Cash or monetary grant because of failure on part of the assessee to disclose full and true disclosure of income and its particulars, this income has escaped assessment for A.Y. 2008-09. Therefore, I have reasons to believe that the assessee has not disclosed fully and truly all the relevant information necessary during the course of assessment and income to the exteniui Rs. 2, 12, 72, 000/- has escaped assessment. (P. R. CHAUHAN) Dy. Commissioner of Income Tax, Circle 7(2)(1), Mumbai." 10. In the reasons recorded, the impugned proceedings are initiate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2010. Only after the details of these very expenses were given during the regular assessment proceedings that the AO disallowed 2% of only gift articles by invoking Explanation 1 to Section 37 (1) of the Act. Therefore, based on the above facts, the impugned proceedings would amount to invoking powers of review, which Section 147 of the Act does not confer upon the AO. Therefore, on the count that there was no failure to truly and fully disclose material facts, and the issue was examined in the course of the assessment proceedings, therefore, the impugned notice must be quashed and set aside. 12. Mr. Rastogi, learned senior counsel for the Petitioner, is justified in placing reliance on the decision of the Coordinate Bench in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ast, in the present case, we are concerned with the satisfaction of jurisdictional conditions to reopen the case under Section 147 of the Act. Secondly, the decision was dealing with the assessment year 1997-1998, but the reference was made to the 2002 medical regulations without discussing how they would apply. Therefore, even on this count, this decision cannot be made applicable to the facts of the present case. We have not been shown any decision regulation or rules which required Petitioner-Assessee to disclose during the assessment proceedings that the sales promotion expenses were incurred on the doctors. Therefore, even on this count, in the absence of any obligation, there cannot be any failure to disclose fully and truly all mater ..... X X X X Extracts X X X X X X X X Extracts X X X X
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