TaxTMI 
TaxTMI 
2022 (4) TMI 717
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....ainst the assessee under the section after expiry of four years from 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 make a return under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment. Ld. Counsel drew our attention towards reasons recorded by the AO vide dated 25.03.2014, copy of which has been submitted by the department before this Bench on 13.01.2022 with a covering letter from the AO vide dated 11.01.2021 and submitted that there is no mention by the AO against the assessee tha....
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....ncluded for deduction from total income as interest income written back which was already disallowed u/s.43B, need not qualify for such deduction. Therefore, the assessee failed to add back the above amount which is liable to be disallowed u/s.43B of the Act and, thus, the amount of Rs. 30,97,959/- has escaped assessment. Ld. Sr. DR also drew our attention towards reasons recorded by the AO vide 25.03.2014 and submitted that under Schedule D of audit accounts of the assessee unsecured loan of Rs. 617,81,998/- was shown as interest free sales tax loan but as per para 6(a) of notes forming part of account, this amounts relates to a period of five years beginning from 01.04.1999 which was ended on 31.03.2014 and amount remained unpaid to Gover....
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....ion 147 of the Act and reassessment order has to be held as barred by limitation and change of opinion on the same material. Therefore, ld. Counsel submitted that the action of the AO in initiating reassessment proceedings u/s.147 of the Act, issuing notice u/s.148 of the Act along with impugned reassessment order and first appellate order may kindly be quashed. 5. On careful consideration of the above rival submissions, first of all, we find it appropriate, just and proper to reproduce the reasons recorded by the AO on 25.03.2014, which reads as follows :- M/s.Ramanasekhar Steels Ltd., AAACR2252A Assessment Year (AV): 2007-08 M/s. Rarnanasekhar Steels Ltd., the Assessee ,filed its Return of Income on ....
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....or such deduction. Therefore the assessee has failed to add back the above amount which is liable to be disallowed u/s.43B and thus Rs. 30, 97,959/- has escaped Assessment. Further it was found that Under Schedule 'D'- Unsecured loan, a sum of Rs. 67,81,998/- has been shown as interest free sales tax loan. As per Para 6(a) of 'Notes forming part of Accounts', this amount relates to a period of 5 years beginning from 01-04-1999. As the company has not discharged its liability towards Government, the proportionate amount of sales tax collected and retained by the assessee pertaining to A.Y. 2007-08 has escaped Assessment and the same is to be added back to the Total Income of the assessee. Therefore,....
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.... notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year: 7. From careful reading of above noted proviso to section 147 of the Act, in our humble understanding, first limb of proviso states that no order of reassessment shall be made after expiry of four years from the end of the relevant assessment year which was sought to be reopened by the AO for the purpose of making reassessment. In the present case, the limit of four years ended on 31.03.2012, therefore, after this date, the AO was not entitled and empowered to initiate reassessment proceedings against the assessee, however, second limb of first proviso to section 147 ....