2017 (9) TMI 1896

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... U/s.250(6) r.w.s 143(3) & 147 of the Act . 2. The Revenue has raised several grounds in its appeal, however the crux of the issue is that the Ld.CIT(A) has erred in deleting the disallowance of Rs. 1,05,59,900/- made by the Ld.AO who had held it to be speculation loss and therefore cannot be set off against normal business loss. 3. The assessee has raised three grounds in its appeal however the crux of the issue is with respect to reopening U/s.147 & 148 of the Act. 4. The brief facts of the case are that the assessee is a private limited company engaged in the manufacturing and trading of billion and jewelry, filed its return of income for the assessment year 2009-10 on 24.02.2009, declaring total income of Rs. 59,75,709/-. There....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e been discovered by the Assessing Officer will not necessarily amount to disclosure within the meaning of the foregoing proviso." This has been reiterated by the Hon'ble High court of Delhi in the case of Consolidated Photo & Finvest Ltd. v. ACIT [2006] 151 Taxman 41 as under: " ... the argument that production of the account books and other documentary evidence relevant for assessment must imply a full and true disclosure of all material facts must be rejected out of hand in the light of the provisions of Explanation (1) .. " 5.2 Further, the procedure laid down under the act and the Hon'ble Supreme Court's decision in the case of Mls.Kelvinator & Co. Ltd. have been followed while reopening the asses....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... evidence. They only mean that he forms a belief from the examination he makes and if he likes from any information that he receives. If he discovers or finds or satisfies himself that the taxable income has escaped assessment, it would amount to saying that he had reason to believe that such income had escaped assessment. The justification for his belief is not to be judged from the standards of proof required for coming to a final decision. " 5.3* Further, reopening is based on a new finding of fact, totally different from the issues dealt in the original assessment. Since, the assessing officer had not applied his mind and formed any opinion on the issues for which the case has been re-opened during the original scrutiny proceed....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....as filing of return U/s.139 of the Act within the due date of filing the return or to disclose fully and truly all material facts necessary for its assessment was complied with. Hence the Ld.AO did not have any jurisdiction to reopen the assessment in the case of the assessee which is beyond 4 years from the end of the relevant assessment year. The Ld.DR on the other hand relied on the order of the Ld.AO and the Ld.CIT(A). 5.3 We have heard the rival submissions and carefully perused the materials available on record. The Ld.AO in his order had relied on many case laws, however he has not mentioned as to what was the failure on the part of the assessee to disclose any material fact fully and truly which was necessary at the time of asses....