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TMI Blog2019 (5) TMI 1774X X X X Extracts X X X X X X X X Extracts X X X X ..... and truly all material facts which has resulted in escapement of income and therefore, as per proviso to Section 147, the assessment cannot be reopened beyond the period of four years. The same is barred by limitation. No failure on the part of the assessee to disclose fully and truly all material facts and the original assessment having been completed under Section 143(3), the notice under Section 148 beyond the period of four years is barred by limitation. The same is quashed. - Decided in favour of assessee. - ITA No. No.6894/Del/2014 - - - Dated:- 23-5-2019 - Shri G.D. Agrawal, Vice President And Shri Kuldip Singh, Singh, Judicial Member Appellant by: Shri Ajay Agarwal and Shri Saurabh Agarwal, CAs. Respondent by: Ms. R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appellant had escaped assessment, the impugned order is illegal and bad in law. Without prejudice : 2. That the learned CIT(A) erred on facts and in law in confirming the disallowance of bad debts written off amounting to ₹ 51,79,440/- which is otherwise allowable u/s 36(1)(vii) of the Act. 3. That the learned CIT(A) erred in law as well as on facts in charging interest u/s 234B of the Act. 3. We have heard the arguments of both the sides and perused the material placed before us. The assessment year under consideration is 2005-06. The original assessment was complete under Section 143(3) vide order dated 28th March, 2007. Notice under Section 148 was issued on 27th March, 2012 which is admittedly beyond four year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. The same was also not found to be reversed/debited in profit and loss a/c moreover provisions cannot be reduced from computation directly. Hence deduction of provision resulted in under assessment of income of ₹ 51,79,440/-. Therefore, I have reasons to believe that income amounting to ₹ 51,79,440/- has escaped assessment within the meaning of proviso to section 147 of the Act. 4. From the above, it is evident that the Assessing Officer has formed an opinion of escapement of income because of allowance of the deduction of ₹ 51,79,440/- in respect of provision for bad and doubtful debts. From the reasons recorded itself, it is evident that in the original return filed under Section 139(1), the income w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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