Reopening of Assessment Quashed: Department Failed to Prove Non-Disclosure of Material Facts Under Section 147

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....The HC quashed the reopening of assessment under section 147 as the Department failed to establish that the assessee had not made a full and true disclosure of material facts at the original assessment stage. The Court relied on several SC precedents including Kelvinator, Bimal Kumar Damani, and Calcutta Discount Co. Ltd. to determine that assumption of jurisdiction under section 147 was bad in law when initiated beyond the four-year limitation period without proving failure of disclosure by the assessee. Regarding write-off of bad debts amounting to Rs. 4.94 crores (restricted to Rs. 4.07 crores), the Court allowed the claim applying the ratio in TRF Ltd., rejecting the lower court's direction to relegate the assessee to appeal remedies.....