TaxTMI 
TaxTMI 
2014 (1) TMI 953
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....ar provisions of the Income Tax Act, 1961 and Rs.3,42,10,351/- u/s 115 JB of the Act. The original assessment u/s 143(3) was made on 31.12.2007 and the profit declared u/s 115JB of Rs.3,42,10,351/- was accepted. Thereafter, the assessment was reopened u/s 147 of the Act on the ground that during the course of original assessment, the Assessing Officer did not add back the provision for doubtful debts of Rs.28,39,451/- while computing the profit u/s 115JB of the Act. Therefore, notice u/s 148 was issued on 19.01.2010. The reassessment was passed u/s 143(3) r.w.s. 147 on 28.12.2007 computing the book profit at Rs.3,70,40,800/-, wherein the provision for doubtful debts was added to the book profit u/s 115JB. 3. As stated the original assessme....
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.... the provisions of Part II and Part VI to the Companies Act, 1956 and Rs.2.72 crores taken to the Reserve a/c as per Schedule 23 of item (d) of the Balance Sheet has not been transferred from the profit and loss account. Therefore, the question of adding back of the reserve u/s 115JB does not arise." 4. The income returned by the assessee was accepted thereafter. The assessment was reopened on the following reasons:- "Proceedings u/s 147 of the Income Tax Act, 1961 were initiated vide notice dated 19.01.2010 by the ITO, Ward 10(2), New Delhi as per following reasons:- "The assessment in the case of M/s DLF Services P.Ltd. for the Assessment Year 2005-06 was completed u/s 143(3) of the Act on 31.12.2007 determini....
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....ent to Sec.115 JB of IT Act. 7. Aggrieved the revenue is in appeal before us on the following grounds:- 1. Whether the Ld.Commissioner of Income Tax (Appeals) under the facts and circumstances of the case and in law was justified in quashing the reopening of the assessment u/s 147 of the Act when the Jurisdictional High Court in the case of Bawa Abhai Singh vs. CIT, 117 Taxman 12 and Rakesh Aggarwal vs. ACIT, 87 Taxman 306, has also held that under the amended provisions of s.147 the power to reopen is much wider and can be exercised even after the assessee has disclosed fully and truly all material facts. 2. The appellant craves leave, to add, alter or amend any ground of appeal raised above at the time of hear....
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.... of the High Court was delivered on 29.08.2006. 11. In view of the binding judgement of the jurisdictional High Court the AO, presumably has not made an adjustment u/s. 115 JB of the Act on the issue of provision for doubtful debts. Thus we are convinced with the order of the Ld.CIT(A) that the reopening was on a mere change of opinion and hence is bad in law. 12. The Hon'ble Supreme Court in the case of DCIT and others vs. Simplex Concrete Piles (India Ltd.) (2012) 254 CTR (SC) 221 at para 3 held as follows:- "the subsequent reversal of the legal position by the judgment of Hon'ble Supreme Court does not authorize the department to reopen the assessement which stood closed on the basis of the law, as it stood at the relevan....