2015 (10) TMI 1610

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....y filed its return of income on 30/10/2005 declaring total income of Rs.nil after setting off of the brought forward loss of Rs. 38,84,610/- under regular provisions of the Income-tax Act,1961 and Rs.nil under 115JB of the Act. Subsequently, the Assessing Officer observed that there was under-assessment of income under MAT provisions. He, therefore, recorded reasons for reopening and issued notice u/s 148 on 15/3/2012. Subsequently, during the re-assessment proceedings u/s 147 of the Act, the AO recalculated the book profits and the claim of reduction of Rs. 3,49,85,584/- representing the interest on term loan waived by the financial institution was not allowed from the book profits u/s 115JB of the Act. 3. Aggrieved, the assessee prefer....

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....refully considered the issue before me. The basic contention of the appellant is that the re-opening is hit by the first proviso to section 147 by virtue of which when the assessment is made u/s 143(3) no action shall be taken to re-open the assessment after four years unless there is a failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment. The appellant has pointed out that the original assessment was completed u/s 143(3) in the course of which all relevant facts were made available to the AO. According to the appellant in the course of the scrutiny assessment which was completed on 30/11/2007 details regarding the sum of Rs. 3,49,85,584/- being interest waved by the term lending in....

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....aken into account for computation of income of the appellant were available on record and there was no failure on the part of the assessee to disclose any material facts. It thus emerges that there was no omission on the part of the assessee to furnish any information or fact. 3.5 As there is no new material based on which the reopening would be warranted it is clear that the AO's action tantamount to a change of opinion. It is an undisputable that the fact of the waiver and quantum involved has been highlighted by the assessee in the financial statements and in the computation of income. The material available on record was of such nature that the AO was in a position to take a view regarding the taxability or otherwise of the amoun....