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2013 (8) TMI 523 - GUJARAT HIGH COURTRe-opening of assessment - Challenge to the notice u/s 148 - SAP Implementation charges claimed as Revenue expenditure in P&L A/c – Held that:- SAP Implementation charges in question was never treated as revenue expenditure, clubbing with Administrative expenses - Return and other accompanying documents were brought on record during the assessment proceedings - One such document happens to be the schedule of administrative expenses at Annexure-II, which includes the said sum of Rs.86.17 lac as a part of 'Capital Work in Progress' – In face of such documents on record, the first ground is held to be factually incorrect - When the expenditure itself was never claimed by way of revenue expenditure, the question of disallowing such an expenditure on such basis requiring of reopening of assessment would not arise – Decided in favor of Assessee. Disallowance u/s 14A of the Income Tax Act of proportionate expenditure for earning the tax free income - Petitioner who had earned tax free dividend income should have been subjected to disallowance of proportionate expenditure for earning such income on the basis of the formula provided in Rule 8D of the Income-tax Rules, 1962 - This claim for disallowance u/s 14 A was examined at length and in the assessment order through a speaking order, part disallowance was made – Held that:- Question of disallowance of expenditure or part thereof under Section 14A of the Act for earning exempt income was very much alive before the Assessing Officer during the original assessment proceedings - Entire issue was scrutinised by the Assessing Officer during the original assessment proceedings. It is only upon consideration of the said aspect, assessing officer has made disallowance to the limited extent of Rs.2,11,316/-. Even within a period of four years such assessment cannot be reopened. Any permission to the Assessing Officer to do so would amount to permitting change of opinion - To correct the assessment order passed after a detailed examination by the Assessing Officer, the succeeding Assessing Officer cannot resort to the proceedings of reopening – Notice quashed. - Decided in favor of Assessee.
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