IN THE HIGH COURT OF DELHI AT NEW DELHI 
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   ITA 83/2012  
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 CIT             ..... Appellant 
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 Through Mr. Sanjeev Sabharwal, Adv. 
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 versus 
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 JCB INDIA LTD         ..... Respondent 
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 Through 
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 CORAM: 
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 HON'BLE MR. JUSTICE SANJIV KHANNA 
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 HON'BLE MR. JUSTICE R.V.EASWAR 
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 O R D E R 
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              13.02.2012 
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 By the impugned order dated 30th March, 2011, the Income Tax 
 Appellate Tribunal (for short, the tribunal) has dismissed the appeal of 
 the Revenue holding that the requirement of failure/omission of the 
 assessee to make full and true disclosure of material facts was not 
 satisfied in the present case. 
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 2. The assessment year in question is 2001-02 and the reasons for 
 reopening were recorded on 31st March, 2008 i.e. four years after the end 
 of the relevant assessment year.  It is admitted that earlier there was a 
 regular assessment under Section 143(3) of the Income Tax Act, 1961, vide 
 order dated 30th September, 2004, at an income of Rs.53,54,39,446/-. 
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 3.  In the reasons recorded, it was stated as under:- 
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 ?The regular assessment in this case was completed under section 
 143(3) on 30.09.2009 at total income of Rs.53,54,39,446/-. 
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 The examination of the assessment records reveals that the assessee 
 has claimed a sum of Rs.26,50,830/- on account of expenditure on club, 
 which is in the nature of non business expenditure. Hence, the same is 
 disallowable. 
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 I have therefore reason to believe that the income of Rs. 
 26,50,830/- chargeable to tax has escaped assessment within the meaning 
 of section 148 of the Act. The income of the assessee requires re- 
 computation.? 
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 4. The tribunal has recorded a finding of fact that in the original 
 assessment proceedings, the assessee had shown and disclosed that an 
 amount of Rs.26,50,830/- was incurred as club expenditure.  It was 
 claimed as a business expenses in the return.  The expenditure was 
 separately indicated in the Tax Audit Report in table 1.  The Assessing 
 Officer had allowed the same. 
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 5. Before the tribunal, the Revenue had submitted that there was 
 failure/omission on the part of the respondent-assessee to make full and 
 true disclosure of material facts.  However, the said contention could 
 not be substantiated.  The Revenue is not able to point out how and in 
 what manner there was failure to disclose the said expenditure or the 
 nature and character was not stated or disclosed.  The true and full 
 disclosure of the expenditure was made in the return.  The stand and 
 content of the respondent assessee was that the expenditure was for 
 business purpose and allowable under Section 37 of the Act. 
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 6. Learned counsel for the Revenue submitted that in course of the 
 reassessment proceedings, the assessee had agreed that 50% of the club 
 expenses should be disallowed.  The said contention of the Revenue has to 
 be rejected as it was an alternative contention and secondly, the 
 judicial pre condition for reopening are not satisfied in the present 
 case. 
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 7. In view of the aforesaid factual position, it is held that the 
 order passed by the tribunal is correct and does not require any 
 interference.  The appeal is dismissed. 
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 SANJIV KHANNA, J. 
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 R.V.EASWAR, J. 
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 FEBRUARY 13, 2012 
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 NA 
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 $ 5 
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