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TMI Blog2019 (2) TMI 1331X X X X Extracts X X X X X X X X Extracts X X X X ..... ctive parties, the matter is taken up for final hearing today. 3. In this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 30.03.2018, issued by the respondent under section 148 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') seeking to reopen the assessment of the petitioner for assessment year 2011-12. 4. The petitioner, a cooperative bank, had filed its return of income on 28.09.2011 declaring total income at Rs. 21,26,48,410/-. The case was selected for scrutiny and notices came to be issued under sections 142(1) and 143(2) of the Act, calling upon the petitioner to furnish the details from time to time. A specific query was raised regarding interest on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , in this case, the assessment for the assessment year 2011-12 is sought to be reopened by the impugned notice dated 30.03.2018, which is clearly beyond a period of four years from the end of the relevant assessment year. It was submitted that during the course of assessment proceedings, the Assessing Officer had called for all the details in respect of the interest receivable on NPA and that, there being no failure on the part of the petitioner to disclose fully and truly all material facts necessary for its assessment for the assessment year under consideration, the impugned notice under section 148 of the Act is without authority of law. 6.1 It was further pointed out that the Assessing Officer seeks to reopen the assessment on the grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the addition. 6.3 It was submitted that even on merits, on the reasons recorded, the Assessing Officer could not have formed the belief that income chargeable has escaped assessment inasmuch as this Court, in the case of Principal Commissioner of Income Tax Vs. Shri Mahila Sewa Sahakari Bank Ltd., (2017) 395 ITR 324 (Guj.) has held that in view of the mandate of the guidelines, it is permissible for the assessee to recognize income from non-performing assets on accrued basis and can book such income only when it is actually received. It was submitted that the above view has been confirmed by the Supreme Court. 7. On the other hand, Mrs. Mauna M. Bhatt, learned Senior Standing Counsel for the respondent has reiterated the grounds set ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal and hence also, the reopening of the assessment on this very ground is without authority of law. 8.1 Lastly, even on merits, the issue stands concluded in favour of the assessee by the above cited decision of this court, which has been confirmed by the Supreme Court and hence, on the reasons recorded for reopening the assessment, the Assessing Officer could not have formed the belief that any income chargeable to tax has escaped assessment. The impugned notice under section 148 of the Act, therefore, cannot be sustained. 9. In the light of the above discussion, the petition succeeds and is, accordingly allowed. The impugned notice dated 30.03.2018 issued by the respondent under section 148 of the Act for the assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X
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