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2022 (9) TMI 1422 - ITAT CHENNAIReopening of assessment u/s 147 - reason to believe - disallowance of the Directors’ remuneration claimed as the current year’s revenue expenditure, whereas according to AO this amount forms part of the indirect expenses of the project and accordingly the same is capital in nature - HELD THAT:- We noted that the Assessee has not completed any project as per the Profit and Loss Account but had claimed the Directors’ remuneration as current year’s revenue expenditure. According to the Assessing Officer, this forms part of the indirect expenses of the project only and hence is not allowable. For this reason, the assessment was reopened by the Assessing Officer. We noted that in the case of TANMAC India Vs. Deputy Commissioner of Income Tax, Circle – I, Pondicherry [2017 (1) TMI 122 - MADRAS HIGH COURT] has considered an identical situation by following the decision of the Hon’ble Supreme Court in the case of Commissioner of Income Tax Vs. Kelvinator of India [2010 (1) TMI 11 - SUPREME COURT] and held that “What is sought to be done by the re-assessment ought to have been achieved by scrutiny assessment proceedings. Having missed the bus earlier, the Department cannot be permitted to avail of the extended time limit in the absence of any new or tangible material - Thus we quash the re-assessment and allow the appeal of the Assessee.
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