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TMI Blog2016 (7) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... s justified in quashing the proceedings u/s. 147/148 holding that the said proceedings were invalid as they had been initiated after the expiry of 4 years from the end of the relevant assessment year?" 3. The Respondent-Assessee is a Civil Contractor who filed his return of income for the subject Assessment Year on 15th October, 2003. During the assessment proceedings, the Respondent-Assessee was asked to give explanation including one with regard to the deposit of Rs. 32.58 lakhs. The Respondent-Assessee by a 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) Rs. 32,58,752/ We had received the contract to const ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Respondent-Assessee. The reasons as communicated to the Respondent-Assessee reads as under : " On perusal of the case records, it is seen that assessee had claimed an amount of Rs. 2,82,66,650/as bad debts and adjusted the same against the sundry creditors written back amounting to Rs. 3,02,01,408/and the balance was credited to P&L account. The bad debts of Rs. 2,82,66,650/includes an amount of Rs. 32,58,752/on account of nonreceipt of due from SBI. However, the 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 Rs. 1,16,54,036/during the F. Y. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal by the impugned order noted that the notice dated 16th March, 2009 issued under Section 148 of the Act sought to reopen the assessment for Assessment Year 2003-04. Thus, undisputedly beyond a period of four years from the end of the relevant Assessment Year. This is particularly in view of the fact that during the assessment proceedings leading to the order dated 31st March, 2006, the Assessing Officer had sought for details in respect of receipt of Rs. 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 disc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee gave details as sought, pointing out that an amount of Rs. 1.16 Crores shown as bad debts in the subject Assessment Year had been received from the State Bank of India in the Financial Year 2005-06 and had offered it to tax under Section 41(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. 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 informati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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