9911796707
TMI Blog2015 (8) TMI 414X X X X Extracts X X X X X X X X Extracts X X X X ..... rd. Brief facts of the case are that the assessee a private limited company is engaged, inter alia, in the business of manufacturing and marketing of audio-video electronic equipments and sub-assemblies thereof and other electronic items. The assessee company had filed its original return of income on 17.11.2003 declaring income of Rs. 1,89,51,020/-. The case was selected for scrutiny and assessment was completed under section 143(3) of the Act, vide order dated 06.03.2006. Subsequently reassessment proceedings under section 147/148 of the Act were initiated vide notice dated 04.09.2009 recording the reasons as: "The assessment of the company M/s Dixon Utilities and Exports (P) Ltd. for the A. Y. 2003-04 on 06.03.2006 at Rs. 1,96,57,890/=. It has been noticed that the amount of Rs. 23.43 lakhs were wrongly claimed by the assessee being the amount written off which pertains to the development of software and forfeiture of registration charges of industrial land. The amounts which were claimed to be written off in P&L A/c were capital in nature and either the assessee should not claimed the same in P&L account or they must have been suo moto disallowed by the assessee company and ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and also during the assessment proceedings at the second stage is on the assessee. Ld. DR also contended that in the present case, the assessee did not fully and truly disclose material facts about the amount of Rs. 23.43 lakh which was wrongly claimed by the assessee being the amount written off which pertains to the development of software and forfeiture of registration charges of industrial land. Ld. DR also pointed out that the AO for reasons recorded for reopening the assessment also noted that the amounts which were claimed to be written off in the P&L account were capital in nature and either the assessee could not claim the same in the P&L account or they must have been suo moto disallowed by the assessee and have been added back into the computation of income. Ld. DR lastly pointed out that the assessee failed to discharge his duties by not adding back the same into his computation of income as per provisions of the Act, therefore, the AO was right and justified in issuing notice u/s 148 of the Act showing his intention of reopening the assessment u/s 147 of the Act. Ld. DR also contended that the CIT(A) was not correct in law and on facts in holding that the notice u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be said that there was a failure on the part of assessee to fully and truly disclose the relevant material facts during assessment proceedings. 5. Finally, ld. Counsel of the assessee submitted that in this situation, the action of the AO issuing notice u/s 148 of the Act and framing reassessment u/s 143(3) r/w section 147 of the Act is clearly hit by the first proviso to section 147 of the Act, therefore, the impugned order of the CIT(A) is correct and justified and the same may kindly be upheld dismissing the appeal of the revenue. 6. On careful consideration of above submissions of both the sides, at the very outset, we respectfully reproduce the relevant operative part of the judgment of Hon'ble Jurisdictional High Court of Delhi in the case of Dalmia Pvt. Ltd. vs CIT (supra) as relied by ld. DR wherein their lordships in para 21 of the judgement held as follows:- "21. The second question which arises for consideration is whether the assessee had made full and true disclosure of material facts. We have already reproduced above the contention of the assessee in this regard in the objections. We have also referred to the two letters written by the Assessing Officer asking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0[has reason to believe91] that any income chargeable to tax has escaped assessment91 for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess91 such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings91 under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year) : 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 year92, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure92 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 fully and truly all material facts92 necessary for his assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly and truly all material facts pertaining to the issue which has been picked up by the AO for recording reasons for issuance of notice u/s 148 of the Act. In the present case, the AO has picked up the issue of written off amount of Rs. 23,43,179 pertaining to amount advanced to M/s Shonkh Technologies International Ltd. and the amount forfeited by Greater Noida Industrial Authority towards aborted project. As we have noted above, the assessee furnished entire details on this issue vide its submissions dated 26.2.2006 during the original assessment proceedings which have been placed by the assessee in its paper book pages 83 to 90. In this situation, the AO was not correct and justified in holding that the assessee did not truly and fully disclose all material facts relevant to the impugned issue of written off amount of Rs. 23,43,179/- during original assessment proceedings. Therefore, the case of the AO goes out of the ambit of first proviso to section 147 of the Act. 10. At this juncture, this would be incomplete without following the dicta laid down by jurisdictional High Court in the case of Dalmia Pvt. Ltd. wherein their lordships referred to its earlier judgment in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
