Case Law Details
CIT Vs. M/s. Indian Potash Ltd. (Madras High Court)
The Tribunal has recorded a factual finding that the Assessee has disclosed the figure of provision for bad debts and doubtful debts and interest income also in the Profit and Loss Account submitted along with the return of income. Therefore, the Tribunal held that there is no failure on the part of the Assessee to disclose fully and truly all material facts. Furthermore, it was pointed out that the figures and reasons for reopening were picked up from the assessee’s accounts submitted along with return. In the said factual position, the Tribunal placed reliance on the decision in the case of CIT V Elgi Finance Ltd., (2006) 286 ITR 674 (Mad) and held that the assumption of jurisdiction in the instant case is barred by limitation.
We are fully in agreement with the view expressed by the Tribunal. From the facts of the case, it is evidently clear that the reopening was a change of opinion. When there is no allegation that the Assessee is not fully and truly disclosed all the materials, the question of reopening the assessment does not arise. The duty of the Assessee rests only to fully and truly disclose all facts in the return, which has been done by the respondent/Assessee. It is not for the respondent/Assessee to tell the Assessing Officer has to how he has to frame the assessment and in the instant case, it is evidently clear that the reopening was because of change of opinion.
FULL TEXT OF THE HIGH COURT ORDER / JUDGEMENT
This appeal filed by the Revenue is directed against the order passed by the Income Tax Appellate Tribunal Bench A, Chennai, in I.T.A.No.2025/Mds/2006, dated 14.03.2008 for the Assessment Year 1998-1999.
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