TaxTMI 
TaxTMI 
2012 (11) TMI 10
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....of the case. 2.a. The Commissioner of Income Tax(A) erred in confirming the reopening of the assessment. b. The Commissioner of Income Tax(A) ought to have appreciated that the reasons for reopening the assessment and unsustainable. c. The Commissioner of Income Tax(A) ought to have appreciated that there is no escapement of income. d. The Commissioner of Income Tax(A) failed to appreciated that the appellant had furnished fully and truly all the material facts necessary for the assessment and reassessment is merely on the basis of change of opinion. f. The Commissioner of Income Tax(A) failed to appreciated that for deciding the question under Section 147, whether the assessee had disclosed fully and truly all material facts, the law ....
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....s on which the assessment was framed under section 143(3) of the Act on 10.03.06 and therefore, it was bad in law. He argued that in the present case of the assessee, the assessee filed return of income declaring loss of Rs. 16,19,41,536/- and the assessment was completed under Section 143(3) read with section 94C(4) on 10.03.2006 assessing the total loss of Rs. 15,90,36,808/- under normal computation and book profit at Rs. 11,19,72,308/-. It was submitted that in this assessment order, the Assessing Officer examined the issue of provision for bad and doubtful debts of Rs. 1,49,46,022/- charged to the profit and loss account by the assessee by issue of notice under Section 143(2) dated 21.07.08 wherein it was stated "as per provisions of Se....
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.... been issued separately and you are requested to comply with the notice." 4. The Authorised Representative of the assessee submitted that the amendment to Explanation-1 to section 115JB was brought by the Finance (No.2) Act, 2009 with retrospective effect from 01.04.2001 by substituting the clause (i) as under: "For the purposes of this section, "book profit" means the net profit as shown in the profit and loss account for the relevant previous year prepared under sub-section (2), as increased by - [(i) the amount or amounts set aside as provision for diminution in the value of any asset" It was the submission of the Authorised Representative of the assessee that notice of reassessment was issued on 31.03.08 and the amendment to Explana....
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....ch was not present to the mind of the officer and could not have been so present on the date on which the power to reopen the assessment was exercised. Consequently, it is evident that the order of the Assessing Officer with reference to computation of book profit under Section.115JB was at least a probable view and as a matter of fact, the correct view to take in view of the decision of Hon'ble Supreme Court in the case of CIT v. HCL Comnet Systems & Services Ltd. [2008] 305 ITR 409/174 Taxman 118. It is well settled that the law laid down by the Supreme Court is declaratory of the position as it always stood. In any event, the view of the Assessing Officer was supported by the interpretation placed even contemporaneously in the judgement ....
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....thorised Representative of the assessee has submitted that on the date of issue of notice under Section.148 on 31.03.08 by the Assessing Officer for reopening of the assessment, the earlier view taken by the Assessing Officer in the assessment framed under Section. 143(3) on 31.03.06 was supported by the decision of the Hon'ble Supreme Court in the case of HCL Comnet Systems & Services Ltd. (supra) and the decision of Hon'ble Delhi High Court in the case of Eicher Ltd. (supra). Further, the Authorised Representative of the assessee has also submitted that the amendment to Explanation-1 to section 115JB was brought by the Finance (No.2) Act, 2009 with retrospective effect from First April, 2001. Thus, on the date of issue of notice for reass....