2018 (11) TMI 1175

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..... ion order, AO specifically notices that the assessee had been maintaining accounts for income tax purposes under the cash system. There was no accounts called for by the AO, who completed the assessment proceedings. We are of the opinion that there could be no allegation raised of non-disclosure of full and true material facts. The reassessment proceedings having been attempted after a period .....

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..... The income tax returns were filed based on cash system of accounting as is permissible under Section 145 of the Income Tax Act, 1961. However, the assessee had not been maintaining any accounts as per the cash system. The assessments were completed and re-assessment proceedings were taken under Section 147 read with Section 143(3), after four years of completion of the assessments. 2. The lear .....

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..... m. No accounts were called for and the assessments were completed. It is also submitted by the learned Counsel for the respondent-assessee that in altogether four years the above problem arose. The problem arose also because of the change in the Companies Act, which mandated maintenance of accounts as per the mercantile system. The assessee had hence maintained the accounts as per the mercantile s .....

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..... credit for an amount of ₹ 73,970/- was not allowed because as per the date of payment shown in the certificate, they were not relating to the assessment year. The assessee by their letter dated 24-5-99 has clarified that they are maintaining accounts for I.T. purposes on cash basis and out of the total receipts for advertisement and interest, a sum of ₹ 3,13,520/- was received during .....

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..... empted after a period of four years as prescribed under Section 147, there should be non-disclosure of full and true material facts. We agree with the Tribunal that there was no warrant for re-assessment especially after the expiry of four years. We reject the I.T.Appeals, answering the questions of law in favour of the assessee and against the Revenue. No order as to costs. - - TaxTMI - TMITa .....

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