TaxTMI 
TaxTMI 
2025 (3) TMI 1015
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....29 March 2016 for the Assessment Year (AY) 2009-10 seeking to reopen the assessment made on 18 April 2013 under Section 143 of the Act. This petition was admitted on 20 December 2016, and the impugned notice dated 29th March 2016 was stayed till final disposal of the petition. Brief Facts: 2. The original income return for AY 2009-10 was filed on 30 September 2009 and revised on 25 March 2011. The return was selected for scrutiny assessment by issuing notice under Section 142 (1) of the Act. 3. During the assessment proceedings, various details were sought for including details relating to promotional expenses and allowability of such expenses in the light of the CBDT Circular No. 5 of 2012. The petitioner vide various letters filed the....
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....the said order, it was stated that CBDT Circular No. 5 of 2012 was not considered by the petitioner and therefore, there was failure on the part of the petitioner to disclose the material facts. The said order further states that there is no bar on reopening the assessment to correct the view of the predecessor and since in the assessment order, there was ad hoc disallowance, the impugned proceedings cannot be said to be based on change of opinion. 6. It is on the above backdrop that the petition was filed and was admitted by this Court. Submissions of the Petitioner: 7. Mr. Agrawal, learned counsel for the petitioner submits that the issue for which the reopening is sought was subject matter of detail enquiry in the course of the asses....
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....n for reopening the case as per first proviso to Section 147 of the Act is that there has to be a failure on the part of the petitioner to disclose fully and truly all material facts necessary for the assessment. 11. The reasons as recorded for reopening reads as under; 2. In the instant case, the income of the assessee was assessed at Rs. 1, 14, 73, 60, 286/- after completion of scrutiny. Verification of records revealed that during the course of scrutiny the assessing officer vide para 4 of the order discussed on allowance of promotional expenses by way of promotional articles (also known as reminder items in medical parlance). These are distributed to doctors for promotion of assessee's products. The assessing officer disallowed 1....
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....nal assessment proceedings. The reasons recorded also admits that the issue was examined during the course of the assessment proceedings and 1/3rd of the promotional expenses were disallowed and the balance expenses were allowed. If this is an admitted position as per the reasons recorded, then we fail to understand how the precondition of failure to disclose fully and truly all material facts necessary for the assessment can at all be satisfied. If at all, there is a failure, it was on the part of the assessing officer to have not disallowed the entire expenditure and not the failure on the part of the petitioner-assessee. Therefore, in our view, the pre-condition required by first proviso to Section 147 of the Act based on the admission m....