TaxTMI 
TaxTMI 
2016 (6) TMI 984
X X X X Extracts X X X X
X X X X Extracts X X X X
....essee by quashing reassessment u/s 147 of the Income Tax Act, 1961 after holding the re-opening as unsustainable? (b) Whether on the facts and circumstances of the case, the Hon'ble Tribunal has erred in law and on facts in not confirming disallowance of provision for damaged goods of Rs. 77,03,560/-?" 2. Question No. 1 concerns the validity of the proceedings for re- opening of the assessment, notice for which was issued within a period of four years from the end of the relevant assessment year. The Assessing Officer, in such re-assessment proceedings, made addition of Rs. 77.03 lacs disallowing the provision for damaged goods made by the assessee. This disallowance has given rise to the second question framed by the Revenue. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ear of occurrence. There is not dispute about this factual position." 4. Learned counsel for the Revenue vehemently contended that the notice for re-opening having been issued within a period of four years from the end of the assessment year, it was within the authority of the Assessing Officer to tax the income which had escaped assessment. He submitted that the element of failure on part of the assessee to disclose true and full facts would not be relevant. He placed reliance on the following decisions of this Court: (i) In case of Praful Chunilal Patel vs. Assistant Commissioner of Income Tax reported in 236 ITR 832; (ii) In case of Gruh Finance Ltd. vs. Joint Commissioner of Income Tax (Assessment) reported in 243 ITR 482; (....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s held by the Division Bench of this Court in Gujarat Power Corporation Ltd. vs. Assistant Commissioner of Income Tax reported in 350 ITR 266, in which, it was observed as under: "41 The powers under section 147 of the Act are special powers and peculiar in nature where a quasi-judicial order previously passed after full hearing and which has otherwise become final is subject to reopening on certain grounds. Ordinarily, a judicial or quasi-judicial order is subject to appeal, revision or even review if statute so permits but not liable to be re-opened by the same authority. Such powers are vested by the Legislature presumably in view of the highly complex nature of assessment proceedings involving large number of assessees concerning mul....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he assessee would have no control whatsoever. Whether the Assessing Officer allows such a claim, rejects such a claim or partially allows and partially rejects the claim, are all options available with the Assessing Officer, over which the assessee beyond trying to persuade the Assessing Officer, would have no control whatsoever. Therefore, while framing the assessment, allowing the claim fully or partially, in what manner the assessment order should be framed, is totally beyond the control of the assessee. If the Assessing Officer, therefore, after scrutinizing the claim minutely during the assessment proceedings, does not reject such a claim, but chooses not to give any reasons for such a course of action that he adopts, it can hardly be ....