JOYMALYA BAGCHI,J. - (1.) This appeal impugns the judgment and order of the learned Tribunal dated 30th June, 2011 in relation to Assessment Years 2003-04 and 2004-05 on the following suggested points of law:- "i) Whether in the facts and circumstances of the case the learned Tribunal was justified in law in dismissing the appeal of the revenue by considering that on the basis of the mere change of opinion the assessment cannot be opened ? ii) Whether in the facts and circumstances of the case the Tribunal was justified in law in treating the proceedings under section 147 of the said Act as ab initio void and passing the order without going into the details and merits of the case and without considering the judgment of the Apex Court reported in 1999 (237) ITR 13 in the case of C.I.T. v. P.B.S. Beedies Private Limited ? iii) Whether in the facts and circumstances of the case the Learned Tribunal was justified in law in considering the disallowance of claim of bad debts claimed by the assessee as the same does confirm to pre-condition for writing off as prescribed under the provisions of Section 36(1)((vii) of the said Act ?"
(2.) We have heard Mrs. Smita Sinha (nee Das Dey) and we have gone through the impugned judgment and order of the learned Tribunal. It appears that after regular assessment was over in connection with the aforesaid two assessments years, department initiated proceedings under Section 147 of the Income Tax Act, 1961 to issue notice. The Tribunal after narrating the entire fact came to the conclusion that it would be a mere case of change of opinion and moreover in any case it was found that notice was issued beyond the prescribed period of limitation for issuance of such notice.
(3.) We, therefore, quote the relevant portion of fact finding of the learned Tribunal - "We have considered the submissions of both the parties and have perused the records. Admittedly the notice has been issued after expiry of four years from the end of the relevant assessment year. Therefore, the proceedings u/s. 147 could be initiated only if income chargeable to tax had escaped assessment by reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment. The assessee's letter filed along with the return of income contained all the details in respect of amount written off in respect of M/s. Mandya National Paper Mills Ltd. It is disputed that the information with regard to the loans and advances written off and material issued on loan written off was furnished before the Assessing Officer at the time of filing of return itself. It is also disputed that the explanation was duly considered by the Assessing Officer before passing regular assessment u/s. 143(3) on 29th March, 2006. Under such circumstances proceedings u/s. 147 are clearly hit by the proviso to Section 147 and have no legs to stand.";