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TMI Blog2011 (1) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... art of the assessee to disclose fully and truly all material facts necessary for the purpose of assessment, the impugned notice issued beyond the period of four years from the end of the relevant assessment year cannot be sustained - Accordingly the petition is allowed - Writ Petition No. 2392 of 2010. - - - Dated:- 24-1-2011 - DEVADHAR J. P., MRIDULA BHATKAR MRS. JJ F.B. Andhyarujina along with A.K. Jasani fo the Petitioner. B.M. Chatterjee instructed by P.S. Sahadevan for the respondent. JUDGMENT 1. Heard 2. Rule. Returnable forthwith. By consent of the parties the petition is taken up for final hearing. 3. This petition is filed to challenge the notice dated March 22, 2010, issued under section 148 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bad debt written off. As per the assessee's letter dated November 13, 2006, the details of bad debts written off is Rs. 95,41,540 and the major parties are `Aum Creaters Unlimited' (Rs. 85,94,516) and `Raam Raj Kalamandir' (Rs. 5,00,000). The amount due from `Aum Creaters Unlimited' (Rs. 85,94,516) relates to advances paid and expenses incurred by the assessee in the financial year 2002-03. The amount due from Raam Raj Kalamandir (Rs. 5,00,000) also related to advances paid. It is noticed that the advances so paid to the above parties by the assessee have not been shown as income and the nature of business of the assessee is not money-lending. The expenses incurred by the assessee in the earlier year on behalf of the above parties are also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me-tax Act the Assessing Officer once again sought to reopen the assessment for the assessment year 2004-05 by recording reasons as follows : "The assessee-company is engaged in the business of production and distribution of films. The return of the assessment year 2004-05 was filed on October 31, 2004 declaring total income of Rs.4,57,64,160. The assessment was completed under section 143(3) on December 19, 2006 determining total income at Rs. 473,63,940. Subsequently it was noticed that the assessee-company has debited an amount of Rs. 95,41,541 in the profit and loss account (schedule 14-Administrative expenses) as bad debt written off. As per assessee's letter dated November 13, 2006, the details of bad debts written of is Rs. 94,41 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment for the assessment year 2004-05 within the meaning of section 147. The assessee's case is covered within the meaning of section 149(1)(b) of the Income-tax Act, 1961 as the concealed income exceeds Rs. 1,00,000." 8. On a perusal of the reasons recorded it is seen that the assessment for the assessment year 2004-05 is sought to be reopened mainly on the ground that as per section 36(1)(vii) of the Income-tax Act amount of any debt or part thereof which has become irrecoverable can be allowed provided the debt has been taken into account in computing the income of the assessee of that previous year or of an earlier previous year, or represents money lent in the ordinary course of business of banking or money lending which is ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2001] 252 ITR 673 In that case it was held that mere production of balance-sheet or account books would not amount to disclosure of material facts necessary for assessment. As noted earlier in the present case the very specific issue regarding allowability of the bad debt was raised during the course of assessment proceedings and only after being satisfied the Assessing Officer allowed the claim of the assessee. Therefore, the decision of this court in the case of Dr. Amin' s Pathology Laboratory [2001] 252 ITR 673 has no relevance in the facts and circumstances of this case. 12. Similarly reliance is placed by the counsel for the Revenue on the decisions in the cases of Smt. Nilofer Hameed v. ITO [1999] 235 ITR 161 (Ker) and Sukhlal Ic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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