Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (6) TMI 838 - ITAT DELHICancellation of reassessment of proceedings u/s 147 of the Act – Change of opinion – Arrear wage revision - Held that:- In order to willy nilly bring the amount to tax the AO again issued notice u/s 148 of the Act - assessee is a government loss making company and in the year as it turned into huge profit, it was decided to revise the wages and give the arrears to employees which is being sought to be reassessed – Relying upon Commissioner of Income Tax, Delhi Versus M/s. Kelvinator of India Limited [2010 (1) TMI 11 - SUPREME COURT OF INDIA] - reassessment cannot be made on change of opinion, assessment cannot be reopened merely on the basis of audit objection as it constitutes mere an opinion by some other agency. The issue is about wage revision (arrears) and is duly considered during the course of assessment by way of specific query which was replied by the assessee – AO being satisfied allowed the claim during regular assessment u/s 143(3) - Based on the audit objection AO proposed section 154 and again required the assessee for explanation which was provided – section 154 proceedings were also dropped - the assessment was again reopened u/s 147 – the AO in order to tow the line of audit objection and to avoid any ramification therefrom reopened the assessment u/s 147 without valid reason - Once the issue was examined during the course of assessment which emerges from the record so clearly, it cannot be held to be a proper case of reopening of assessment – thus, there was no infirmity in the order of the CIT(A) – Decided against Revenue.
|