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TMI Blog2017 (11) TMI 1737X X X X Extracts X X X X X X X X Extracts X X X X ..... y not appreciating explanation 1 to Section 147 of the Income Tax Act, 1961. 2. On the facts and in the circumstances of the case, the ld CIT (A) has erred in law in deleting the addition of Rs. 10.43 crores made by the AO on account of change in accounting policy failing to appreciating that the income of the assessee decreased by 10.43 crores which is in contradiction to section 145A Income Tax Act, 1961." 3. The brief facts of the case are that the assessee is a public sector bank which filed its return of income on 30.09.2008 declared loss of Rs. 14.53 crores. It was assessed u/s 143(3) on 23.12.2010 at a loss of Rs. 10.12 lacs. 4. Later on it was observed by the AO that there is change in the accounting policy with respect to recov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l before us. 6. The LD DR relied upon the order of the LD AO on the issue of reopening as well as on the issue of merits of addition of Rs. 10.43 crores. The LD AR relied upon the order of the LD CIT (A). 7. We have carefully considered the rival contentions. The first ground of appeal of reopening is with respect to reappraisal of the „notes on accounts‟ of the assessee which was there at the time of original assessment also. The bank has disclosed all material facts to the LD AO at the time of original assessment. There was no failure on the part of the assessee to disclose fully and truly material fact of the computation of total income. This stand of the assessee is also supported by the order of the Hon'ble Supreme Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before honourable Supreme Court. Therefore as in the present case also the assessee has not failed to disclose fully and truly the material facts we do not find any infirmity in the order of the LD CIT (A) in quashing the reopening made by the LD AO. In the result ground No. 1 of the appeal of the Revenue is dismissed. 8. Ground No. 2 of the appeal of the Revenue is against deletion of addition of Rs. 10.43 crores. It has been noted by the LD CIT (A) that the LD AO could not point out that how the change in the accounting policy is not permitted. It was however submitted that in earlier years the assessee was following the system of appropriating recovery towards principal in the case of non-performing assets such as suits filed and compr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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