TaxTMI 
TaxTMI 
2022 (2) TMI 1039
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.... Rs.Nil under the normal provisions of the Act and "book profits" of Rs. 891,15,21,678 under Section 115JB of the Income Tax Act, 1961 ("the Act"). The return of income was accompanied with a copy of petitioner's audited accounts for the year ended 31st March 2005, the Tax Audit Report dated 20th October 2005 in Form 3CA and 3CD and the report in Form 29B dated 20th October 2005 setting out the computation under Section 115JB of the Act. 2. During the course of assessment of proceedings various queries were raised and in particular relating to a sum of Rs. 105,45,10,183/- debited to the P&L Account towards "provision for customs duty" and why disallowance should not be made under Section 143B of the Act. Petitioner gave explanation vide ....
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....ment completed under Section 143(3) of the Act, cannot be reopened after the expiry of four years from the end of the assessment year unless it is shown that the assessee has either failed to furnish the return or has not made a full and true disclosure of all material facts. Respondent no.1 has not alleged in the recorded reasons that there has been any failure on the part of petitioner to make a full and true disclosure of the material facts. On the other hand, the record shows that there has been a full and true disclosure of the material facts and that the impugned reassessment proceedings are based on a reappraisal of the same material. (b) It is well settled by a number of judgments of this Hon'ble Court that an assessment ca....
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....iabilities. 8. We have heard the Counsels and considered the petition, the documents annexed to the petition and also the affidavit-inreply. 9. The Proviso to Section 147 of the Act provides that where an assessment under Section 143(3) has been made for the relevant assessment year, no action shall be taken under Section 147 after the expiry of four years of the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment for that assessment year. Reason recorded for reopening does not state that there has been failure to disclose truly and fully a....
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...., it has not been alleged that there has been any failure on the part of the assessee to make a full and true disclosure of the material fats. 10. Assessing Officer has also asked petitioner to specifically explain the facts relating to the sum of Rs. 105,45,10,183/debited to the P&L Account towards provisions for customs duty and why a disallowance should not be made under Section 143(3) of the Act. Petitioner has explained the full facts vide its letter dated 14th November 2007. In fact, the amount of Rs. 105,45,10,183/- has been offered to tax by petitioner in the succeeding Assessment Year 2006 - 2007 and assessed. It is only thereafter the Assessing Officer has passed the assessment order dated 30th November 2007 in which he has tho....
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.... 110,06,18,525/-. 13. Therefore, in our view, there has been a full and true disclosure of the material facts by petitioner and it is a clear case of change of opinion to take a different view relying on the same set of documents. Change in opinion cannot construe "reason to believe". 14. Even in the order impugned rejecting the objections, respondent no.1 has not disputed that there has been no failure on the part of petitioner to make a full and true disclosure of the material facts and has proceeded on an erroneous assumption that reopening is permissible even if there is no failure to make a full and true disclosure of the material facts. 15. In the circumstances, petition is allowed in terms of prayer Clause (a), which reads a....
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....e IT Act by the AO in the order u/s 143 (3) of the IT Act. Subsequently, the CIT (A), vide order dated 13.10.2008, for e year under consideration, while confirming the addition , held that the amount of provision for custom duty', debited to the profit and loss account and added to the total income of the assessee, to be in the nature of a contingent liability and not an ascertained liability. The Explanation [1] (c) to section 115JB of the IT Act, states that the book profits are to be increased by "the amount or amounts set aside to provisions made for meeting liabilities, other than ascertained liabilities". Hence, any amount in the nature of a contingent liability is required to be added back....