2016 (4) TMI 78

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....turn of income for AY 2005-06 on 29-10-2005 disclosing a total income of Rs. 8.63 crores. The assessment was completed u/s 143(3) of the Act on 23.10.2007. Thereafter the AO reopened the assessment by issuing notice u/s 148 on 30.03.2012, i.e., after the expiry of four years from the end of the assessment year for disallowing the following claims that were allowed in the original assessment proceedings:- (a) Bad debts claim of Rs. 348 lakhs (b) Loss from foreign currency transactions - Rs. 29.74 lakhs The AO completed the reassessment by disallowing both the items cited above. 3. Before Ld CIT(A), the assessee contested the validity of reopening of assessment. The assessee demonstrated that the assessing officer had raised speci....

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....tions truly and fully and hence the reopening of the assessment was bad in law. The assessee, in this regard, has taken support of the first proviso to sec. 147 of the Act. The Ld CIT(A) agreed with the said contentions of the assessee and accordingly quashed the reassessment order. Aggrieved, the revenue has filed this appeal before us. 4. We heard the parties and perused the record. The undisputed facts are that the original assessment, in the instant case, was completed u/s 143(3) of the Act. Further, the assessee has demonstrated before the AO that the assessing officer did raise specific queries with regard to the two disallowances referred above. The assessing officer has reopened the assessment after the expiry of four years from ....

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....he facts and circumstances of the case, statement of facts, relevant assessment order, relied upon case laws by the LAR, written submission and the arguments made by the LAR before the undersigned. After considering the rival submissions, I agree with the contention of the appellant that re-assessment proceedings u/s.148 in its case are barred by limitation due to the proviso of sec.147 of I.T.Act. It is noted that though the AO has claimed that the income has escaped assessment during the year on account of wrong claim of bad debt and foreign exchange gain, but it is worth noting that during the original assessment the then A.O. has specifically raised both the issues in question in the notice dated 14.12.2007 and in compliance of the said....