TaxTMI 
TaxTMI 
TaxTMI 
2012 (11) TMI 849
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....ed for scrutiny assessment and the assessment came to be framed at a total loss of Rs. 3,68,090 under section 143(3) of the Act. Subsequently, the impugned notice came to be issued to the petitioner seeking to reopen the assessment for the said assessment year. 3. Mr. M. J. Dawawala, learned advocate for the petitioner, submitted that the assessment year is 1996-97 whereas the impugned notice has been issued on February 27, 2003, after the expiry of a period of four years from the end of the relevant assessment year and as such in the absence of any allegation to the effect that there is any failure on the part of the petitioner to disclose fully and truly all material facts necessary for his assessment for the assessment year under....
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....n a change of opinion inasmuch as there is no new material which has come on record to justify formation of opinion on the part of the Assessing Officer that income chargeable to tax has escaped assessment. Therefore, invocation of powers under section 147 of the Act is without jurisdiction, both on the merits as well as on the ground that the same is beyond a period of four years from the end of the relevant assessment year without there being any failure on the part of the petitioner to disclose fully and truly all material facts necessary for its assessment. 4. On the other hand, Ms. Mauna Bhatt, learned senior standing counsel, appearing on behalf of the respondent, opposed the petition by placing reliance upon the averments mad....
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....der sub-section (2) of section 142 or section 148, or (ii) disclose fully and truly all material facts necessary for his assessment for that assessment year. Before initiating proceedings under section 147 by issuing notice under section 148 of the Act, the Assessing Officer is required to record reasons for reopening the assessment recording satisfaction as regards compliance with the provisions of section 147 of the Act. 6. In the facts of the present case, undisputedly the impugned notice has been issued after the expiry of a period of four years from the end of the relevant assessment year. Under the circumstances, the requirements of the proviso to section 147 of the Act must be satisfied to vest in the Assessing Officer the ju....
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....n-reply filed by the respondent a copy of the "form for recording reasons for initiating proceedings under section 147 of the Act for obtaining the approval of the Commissioner of Income-tax" has been annexed which, according to the learned counsel for the respondent, contains detailed reasons. In the said form against the column "Reasons for the belief that income has escaped assessment" it has been stated thus : "While finalizing the regular assessment for the assessment year 1996-97 under section 143(3), the Assessing Officer allowed the assessee's claim for bad debts of Rs. 9,59,423 on the basis of entries passed in the profit and loss account which was not allowable looking to the decision of the Supreme Court in the case of Associated....
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....ecedent for assumption of jurisdiction under section 147 of the Act beyond a period of four years from the end of the relevant assessment year are clearly not satisfied. 9. Another aspect of the matter is that as noticed earlier the sole reason for reopening the assessment is to scrutinize the assessee's claim of bad debts. In this regard, a perusal of the record of the case shows that during the course of assessment proceedings, the petitioner had made detailed sub- missions in respect of its claim for setoff of the loss in respect of bad debt on account of embezzlement of funds by the accountant during the financial year 1993-94. The Assessing Officer after considering the submissions had accepted the same and had allowed the set-....