9911796707
TMI Blog2010 (9) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... not covered by the proviso to Section 147 of the Act - the present appeal being bereft of merit, is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... e first proviso to Section 147 was not fulfilled in the present case. 7. In fact, the first proviso to Section 147 which provides extended limitation for reassessment i.e. beyond the period of four years reads as under:- "Provided that where an assessment under sub-section (3) of section 143 or this section has been made for the relevant Assessment Year, no action shall be taken under this section after the 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 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment proceedings for A.Y. 1997-98 and 1998-99, in the light of the order passed by the CIT u/s. 263 on 08.03.2004 for the A.Y. 1999-2000 holding that the expenditure claimed under the heard "partners training expenses" has been wrongly allowed by the A.O., and in the assessment for the A.Y. 2001-02, the expenses claimed by the assessee under the head "partners training expenses" has not been allowed as not having been incurred for the purpose of business. It is thus clear that the A.O. has reopened the assessment for the A.Y. 1997-98 and 1998-99, in the light of the findings or the decisions taken in the A.Y. 1999-2000 and 2001-02, with regard to the allowability of the expenses under the heard "partners training expenses". The A.O. has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... count, balance sheet and trading account were duly examined by the A.O. as so mentioned by the A.O. himself in the assessment order so made u/s. 143(3) of the Act on 06.03.2000. 17. In the light of the discussion made and facts noted about, it is clear that the A.O. has not made out any case in the reasons recorded for issuing a notice u/s. 148 of the Act that there was a failure on the part of the assessee to disclose fully and truly all material facts with regard to the claim of partners training expenses made in the return of income. Further, we find that the assessee had disclosed fully and truly the facts of claiming partners training expenses at Rs. 10,46,391/- as so clearly stated in the P&L account as a separate and distinct item. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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