https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=461577 https://www.taxtmi.com/caselaws?id=461577 Reopening of assessment u/s 147 - income relevant to the receipts on account of EDC charges had escaped assessment - Notice issued beyond period of four years - HELD THAT:- Undisputedly, the facts of the case and issue under consideration are exactly identical to that of the assessee's own case for assessment year 2008-09 [2017 (12) TMI 1801 - ITAT CHANDIGARH] discussed that the EDC charges have been disclosed by the assessee in the balance sheet of the assessee which form part of the documents filed with the return of income and further the AO had also gone through the balance sheet and made various queries to assessee through questionnaires dated 18.7.2011 and 10.10.2011. The EDC charges formed part of Schedule D of the balance sheet under the head 'other liabilities'. No new tangible material had come to the knowledge of the AO. AO has recorded that "during perusal of records in this case, it was seen that EDC charges were received by the assessee". Hence the opinion regarding the escapement of income had been derived by the AO on re-appraisal of the material already available on record. Tribunal has also discussed that what the assessee was supposed to disclosed was that important and primarily facts pertaining to the income and not reasoning or logic which would lead to the conclusion of the nature of receipt. When the assessee in this case had already disclosed the necessary facts about the EDC charges i.e the nature and quantum of receipts, hence, there was no failure on the part of the assessee to disclose fully and truly any material facts necessary for the assessment. Thus, held that the balance sheet and profit and loss account are the primary documents, which are attached along with return. AO is supposed to go through these primary documents. These documents do not fall in the category of books of account or other evidences which may escape the attention of the Assessing officer during the assessment proceedings. In the case in hand before us also, the facts are identical to that for assessment year 2008-09. The balance sheet wherein the EDC charges found mention under the head "other liability" was duly attached with the return of income. AO had duly considered the said balance sheet and applied his mind and issued various queries to the assessee regarding various expenditure, liabilities and assets etc. forming part of the balance sheet through questionnaires dated 18.7.2011 and 10.10.2011. Under the circumstances, it cannot be said that there was any failure on the part of the assessee to disclose fully and truly the material facts necessary for the assessment. Thus the reopening is hereby held bad in law and reassessment framed in this case is set aside and the consequential additions made during the re-assessment, hence, stood deleted. Decided in favour of assessee. Case-Laws Income Tax Tue, 22 May 2018 00:00:00 +0530