TaxTMI 
TaxTMI 
2011 (1) TMI 432
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....d. The objection raised by the petitioner for reopening of the assessment has also been dismissed vide order dated October 25, 2010. 4. In the present case the original assessment order under section 143 (3) of the Income-tax Act, 1961 was passed on December 19, 2006 wherein the Assessing Officer inter alia had allowed deduction of Rs. 94 lakhs claimed as bad debt. 5. By notice dated March 23, 2009 issued under section 148 of the Income-tax Act, 1961 the Assessing Officer sought to reopen the assessment within a period of four years from the end of the relevant assessment year by recording reasons which reads thus : "The assessee-company is engaged in the business of production and distribution of films. The return for the assessment yea....
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.... part thereof is allowable as deduction subject to the debt has been taken into account in computing the income of the assessee of that previous year or of an earlier previous year, or represents money lent in the ordinary course of business of banking or money-lending which is carried on by the assessee. In view of the above, the claim allowed of Rs. 95,41,540 as bad debt written off under section 36(1)(vii) is not in order. The same is required to be disallowed and added to the income of the assessee. This has resulted in underassessment of income of Rs. 95,41,540. Hence, I have reason to believe that income chargeable to tax Rs.95,41,540 has escaped assessment for the assessment year 2004-05 within the meaning of section 147. Issue not....
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....rom Aum Creaters Unlimited of Rs.85,94,516 relates to advances paid and expenses incurred by the assessee in the financial year 2002-03. The amount due from Raam Raj Kalamandir of Rs. 5,00,000 also relates to advance paid to the party. It is noticed that the advances so paid to the above parties by the assessee have not been shown as income and the nature of business of the assessee is not money-lending. The said expenses incurred by the assessee in the earlier year on behalf of the above parties are also not shown as income in the profit and loss account. As per section 36(1)(vii) of the Income-tax Act, amount of any debt or part thereof is allowable as deduction subject to the debt has been taken into account in computing the income of t....
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....ing satisfied allowed the claim. Thereafter notice under section 148 of the Act was issued on March 23, 2009 within four years from the end of the relevant assessment year and again on receiving explanation from the assessee, no further action was taken on the notice dated March 23, 2009. 9. Once again, by the impugned notice dated March 22, 2010 the assessment is sought to be reopened on the very same grounds after the expiry of four years from the end of the relevant assessment year. 10. As per the proviso to section 147 of the Income-tax Act, 1961 assessment beyond four years from the end of the relevant assessment year can be reopened only if there is failure on the part of the assessee to disclose fully and truly all the material fac....