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TMI Blog2012 (2) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... .Y.CHANDRACHUD, J.) : Rule; with the consent of Counsel for the parties returnable forthwith. With the consent of Counsel and at their request the Petition is taken up for hearing and final disposal. 2. The Petitioner has challenged a notice dated 8 March 2011, issued under Section 148 of the Income Tax Act, 1961, by which the assessment for Assessment Year 200405 is sought to be reopened. The reopening of the assessment is admittedly beyond the period of four years from the end of the relevant assessment year. 3. On 30 August 2006, the Assessing Officer passed an order of assessment under Section 143(3). The total income of the assessee was computed at Rs.7.62 lakhs. The book profit of the assessee under Section 115JB was computed at R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Rs.1.28 crores), Explanation (1)(i) to Section 115JB was introduced by the Finance (No.2) Act, 2009 with retrospective effect from 1 April 2001. Hence, while, in view of the amended provisions, there may be reason to believe that income has escaped assessment, that in itself cannot sustain the order of reopening in the present case beyond the period of four years since a retrospective amendment of law by Parliament cannot give rise to an inference that there was a failure on the part of the assessee to fully and truly disclose all material facts necessary for assessment; (iii) As regards gratuity and superannuation, the claim of the assessee for deduction has been allowed and no disallowance of the expenditure was made on the footing that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1)(i) was inserted into the provisions of Section 115JB by the Finance (No.2) Act, 2009 with retrospective effect from 1 April 2001. Clause (i) of Explanation (1) was introduced to include the amount or amounts set aside as provision for diminution in the value of investment. In view of the retrospective amendment of law by Parliament, the Assessing Officer may have reason to believe that income has escaped assessment. But that in itself is not sufficient for reopening an assessment beyond the period of four years. Beyond the period of four years when an assessment is sought to be reopened, there must be a failure on the part of the assessee to fully and truly disclose all material facts necessary for assessment. In fact, the retrospective ..... X X X X Extracts X X X X X X X X Extracts X X X X
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