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TMI Blog2021 (11) TMI 507X X X X Extracts X X X X X X X X Extracts X X X X ..... ment and therefore it cannot be said that there was non disclosure of material facts relevant for assessment. ITAT has also observed that AO while passing assessment order has referred to the actuarial report as on 31/3/2003 and hence it cannot be said that AO has not made any inquiry in respect of negative reserve which has been shown in actuarial report. ITAT has also observed that the assessment order was passed with due application of mind and the AO has not brought any tangible material on record to show that there was any failure on the part of the assessee to disclose fully and truly all material on record necessary for assessment. - INCOME TAX APPEAL NO.1440 OF 2018 - - - Dated:- 22-10-2021 - K. R. SHRIRAM AND AMIT B. BORKAR, JJ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us disclosed in the actuarial valuation report for the year and hence profit and gains of life insurance business of the assessee for Assessment Year 2003-2004 is taken at ₹ 81,000/- and completed the assessment under Section 143(3) of the Act on 21/3/2006. 3. The case was reopened on 26/3/2010 and notice under Section 148 of the Act dated 26/3/2010 was issued on Respondent. The reasons for reopening was communicated to the assessee on 26/4/2010 and notice under Section 143(2) of the Income Tax Act dated 26/4/2010 was also served. The reasons for reopening were as under: During the AY 2003-2004, the assessee has negative reserves of ₹ 1,55,05,000/-. This negative reserve has not formed part of the actuarial surplus which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed are as under: 1. Whether on the facts circumstances of the case and in law, the Hon'ble ITAT was justified in holding that the proceedings under Section 147 of the I. T. Act are not valid and holding that the reopening of the assessment was merely based on change of opinion ? 2. Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT was justified in holding that the AO has not brought any tangible material on record to indicate that there was an omission or failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment, ignoring the fact that the assessee has understated the income by not showing the negative surplus of ₹ 1,55,05,000/- as p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITAT has concluded that during the assessment proceeding respondent had furnished actuarial form that showed negative result and the Assessing Officer had made addition of ₹ 81,000/- during the original assessment proceeding on account of actuarial surplus. Negative reserve was part of document furnished during the assessment and therefore it cannot be said that there was non disclosure of material facts relevant for assessment. ITAT has also observed that Assessing Officer while passing assessment order has referred to the actuarial report as on 31/3/2003 and hence it cannot be said that Assessing Officer has not made any inquiry in respect of negative reserve which has been shown in actuarial report. ITAT has also observed that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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