9911796707
TMI Blog2016 (7) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) of the Act for the Assessment Year 2006-07. Thus, we find that there has been a full and true disclosure of all material facts during the regular assessment proceedings by the Respondent-Assessee. Consequently, the condition precedent for issuing a notice beyond a period of four years from the end of the relevant Assessment Year is not satisfied. The submission made on behalf of the Revenue that as the information was given on 30th March, 2006, it would amount to nondisclosure of information, is beyond our comprehension. The requirement of law is that the Respondent-Assesse should have made true and full disclosure of all material facts necessary for Assessment. This has been certainly done. In this case, letter dated 29th March, 2006 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... letter dated 29th March, 2006 (received by the Assessing Officer on 30th March, 2006 at 11.30 a.m.) gave necessary details which reads as under: Misc. Deposits (SBI Madras) ₹ 32,58,752/ We had received the contract to construct LHO building at Aparna Complex, Chennai, from State Bank of India for ₹ 7,23,19,564/in the year 1996. Out of th above we have received ₹ 6,75,75,629/against the bills certified. We submitted out prefinal bill to the SBI on 26.11.2001. The said bill was accounted for as income in the previous year relevant to A.Y. 200203. Further, from various bills in the past the Bank had deducted some money and the said money were credited to the profit and loss account at the relevant time and the amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer disallowed the entire bad debt amount and added back in computing the income. Perusal of records shown that the bad debts claimed by the assessee pertained to earlier year. However, the assessee has also received an amount of ₹ 1,16,54,036/during the F. Y. 2005-06 and the same was offered for A. Y. 2006-07 u/s. 41(1) of the Act. Since, the assessee has claimed the bad debts of earlier years during A. Y. 2003-04, the income received in respect of the work carried out in the earlier year and remained unrealized should have been offered for taxation in A. Y. 2003-04 as the assessee is following the mercantile system of accounting. This has resulted in under assessment for ₹ 1,16,54,036/. 5 The Respondent-Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of receipt of ₹ 1.16 Crores and the same was disclosed by the Respondent-Assessee during the assessment proceedings, as is evident by letter dated 29th March, 2010 (received by the Assessing Officer on 30th March, 2010). Thus, the condition precedent of failure on the part of the Assessee to disclose fully and truly all material facts necessary for Assessment, was not satisfied in this case. In the above view, the Tribunal allowed the Respondent-Assessee's Appeal. 8 The grievance of Mr. Pinto, learned Counsel appearing for the Revenue with the impugned order of the Tribunal is that there was a failure on the part of the Respondent-Assessee to truly and fully disclose all material facts during the regular assessment proceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent-Assessee. Consequently, the condition precedent for issuing a notice beyond a period of four years from the end of the relevant Assessment Year is not satisfied. 10 The submission made on behalf of the Revenue that as the information was given on 30th March, 2006, it would amount to nondisclosure of information, is beyond our comprehension. The requirement of law is that the Respondent-Assesse should have made true and full disclosure of all material facts necessary for Assessment. This has been certainly done. In this case, letter dated 29th March, 2006 indicates that the details filed by the Respondent-Assessee consequent to the query and directions of the Assessing Officer. This also indicates that there has been an opinion formed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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