9911796707
TMI Blog2019 (2) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... a) On 30th November, 2011, the petitioner filed its return of income declaring a total income of Rs. 1.76 crores. Alongwith its above return of income the petitioner also filed Form 29B for the purpose of computation of book profit under Section 115JB of the Act. (b) During the course of assessment proceedings, the Assessing Officer made inquiries with regard to the provision for doubtful debts. This on examination of detailed note given by the petitioner in Form No.29B accompanying the return of income. The Assessing Officer being satisfied did not make any addition for the provision of doubtful debt while computing the profits under Section 115JB of the Act and finally made an assessment on 17th March, 2015 under Section 143(3) Act. (c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 58,000/chargeable to tax for F.Y. 2010-11 relevant to A.Y. 2011-12 has escaped assessment. Therefore, it is proposed to reopen the assessment by issuing notice u/s. 148 of the Act in the aforesaid assessee company's case for A.Y. 2011-12. 3. Analysis of information collected/received: On the basis of information collected as mentioned in para 2 above, it can be concluded that the assessee has offered income u/s 115JB but not added Rs. 8,69,58,000/chargeable to tax for F.Y. 2010-11 relevant to A.Y. 2011-12 has escaped assessment. 4. Enquiries made by the AO as sequel to information collect/received: From perusal of paragraph 2 & 3 above, the material evidence gathered and discussed gives enough insights that income has escaped assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made. Since, 4 years from the end of the relevant year has expired int his case, the requirements to initiate proceedings u/s 147 of the Act are reason to believe that income for the year under consideration has escaped assessment because of failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for the assessment year under consideration. It is pertinent to mention here that reasons to believe that income has escaped assessment for the year under consideration have been recorded above (refer paragraph1). I have carefully considered the assessment records containing the submissions made by the assessee in response to various notices issued during the assessment /reassessment proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings. It is important to highlight here that material facts relevant for the assessment proceedings and the same may be embedded in annual report, audited P & L account, balance sheet and books of account in such a manner that it would required due diligence by the AO to extract these information. For afforested reasons, it is not a case of change of opinion by the AO. In this case more than four years have lapsed from the end of assessment year under consideration. Hence, necessary sanction to issue notice u/s 148 has been obtained separately from Principal Commissioner of Income tax as per the provisions of section 151 of the Act." (d) On receipt of the above reasons in support of the impugned notice, the petitioner filed its objection ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was after Assessing Officer satisfying himself with the petitioner's reply that the petitioner's book profit were determined under section 115JB of the Act. This would indicate that the impugned notice is an attempt to review the order dated 17th March, 2015 under Section 143(3) of the Act, which is clearly not permissible. 4. In the above view, the impugned notice is without jurisdiction as it is hit by the first proviso to Section 147 of the Act. This in the absence of there being any failure to disclose truly and fully all material facts. Besides during the regular proceedings the Assessing Officer has occasion to examine the issue of provision for doubtful debts in the context of arriving of book profit of the petitioners. These re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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