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2023 (3) TMI 1111 - MADRAS HIGH COURTReopening of assessment u/s 147 - extension of period of limitation u/s 147 - computing the income u/s 115JB excluded the provision created towards bad and doubtful debts from the purview of 'Book Profits' - HELD THAT:- It leaves no room for any doubt that to invoke the extended period, AO ought to show/ demonstrate the existence of any of the three circumstances set out in the proviso to Section 147 - In this case, failure on the part of the assessee to fully and truly disclose all material particulars in our view would constitute the "jurisdictional fact" for invoking extended period of limitation and failure to record the existence of the above jurisditional fact while invoking the extended period under the proviso to Section 147 of the Act, would vitiate the entire proceedings. When the view taken by the assessee is also the view taken by the Hon'ble Supreme Court [1972 (8) TMI 110 - SUPREME COURT] it would not be open to the Revenue to state that there is failure on the part of the assessee to fully and truly disclose all material particulars. Afortiori there is a legislative affirmation of the view taken by the assessee by way of an amendment introduced to Section 115 JB of the Act with regard to the treatment to bad and doubtful debts whereby the above position of law declared by the Hon'ble Supreme Court was neutralized with retrospective effect from 01.04.2010 We agree with the finding of the learned Single Judge that the condition precedent to invoke extended period of limitation under Section 147 of the Act viz., failure on the part of the respondent /assessee to disclose fully and truly all material particular is absent in the facts of the case.
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