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Section 147 of the Income-tax Act, 1961 - Income escaping assessment - Non disclosure of primary facts - Assessment year 1998-99 - Where assessee-company had not computed income under section 115JA properly, Assessing Officer rightly reopened assessment order [In favour or revenue] The Assessing Officer reopened the assessment order on the ground that the assessee-company had not computed the income under section 115JA properly, stating that (a) the assessee-company had not admitted income under section 115JA under the pretext of having unabsorbed depreciation and unabsorbed loss, (b) the provision for bad and doubtful debts was omitted to be considered for arriving the book profit under section 115JA, and (c) the assessee-company had not credited the royalty written back in the profit and loss account which were written back by the collaborator which was clearly a taxable income. Held that the finding of the Assessing Officer was that as per section 115JA, the assessee did not have any business loss or unabsorbed depreciation to be carried forward to the assessment year 1998-99. Further, the assessee had claimed that an accumulated royalty which was debited in the profit and loss account for the assessment years 1991-92 to 1997-98 was written back to the profit and loss account for this assessment year since the royalty was waived by their collaborator. The assessee considered this royalty written back in the 'profit and loss account appropriation account', instead of crediting the same in the profit and loss account. Since the royalty had been debited to the profit and loss account from the accounting year ending 31-3-1991, onwards, the waiver of royalty was clearly a taxable income and had to be treated as income and the book profit under section 115JA had to be arrived at accordingly. In the facts and circumstances of the case, the Assessing Officer had rightly assessed the matter and passed the assessment order. CASE REVIEW Asstt. CIT v. Rajesh Jhaveri Stock Brokers (P.) Ltd .[2007] 291 ITR 500/161 Taxman 316 (SC)followed. CASES REFERRED TO Dy. CIT v. Beardsell Ltd. [2000] 244 ITR 256/[2001] 116 Taxman 149 (Mad.) (para 5), Trustees of H.E.H. the Hizam's…

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