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2014 (6) TMI 73 - ITAT JODHPURValidity of reopening of assessment u/s 144/147 - ROI had not been regularly verified and it was only processed u/s 143(1) – capital gain not disclosed by the assessee in his ROI - nvestment was also not disclosed - Held that:- The contention of assessee cannot be accepted because u/s 147 the AO can assess or reassess income - When the ROI had not been regularly verified and it was only processed u/s 143(1) of the Act, the AO can assess income after the Return of Income is processed u/s 143(3) of the Act - The AO has enough evidence of escapement of income – thus, the action taken u/s 147 r.w.s.148 and section 144 is a valid action - The AO can very well assess as well as reassess the ROI if it is so done – Decided against Assessee. Addition of unexplained capital expenses – Expenses incurred in on erection and installation of plant and machinery – Held that:- The genesis of the addition is the Inspector’s report - the report was never confronted to the assessee - The assessee has argued that no such capital expenditure was incurred during the year - Entire working and finding of the CIT(A) again is found to be based on Inspector’s report - Untested statement of the Inspector given in his report cannot be made a basis of any addition unless it is confronted with the assessee and moreover, certain other corroborative evidence is found – thus, this baseless addition is set aside – Decided in favour of Assessee.
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