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2013 (6) TMI 624 - AT - Income TaxReopening of assessment - additions on account of transfer pricing adjustments and determined the total income - Held that:- The assessment was reopened for assessing the escaped income on account of increase in work in progress which according to the AO was due to advances received from the customers. However, reading of the assessment order passed u/s 143(3) r.w.s. 147 reveals the fact that the issue was completely given a go bye in the reassessment order. The Assessing Officer not even has made a whisper about the income which he believed to have escaped assessment as per the reasons recorded by him. In fact, as it appears during the reassessment proceeding the AO had made a reference to the TPO for determining the arm's length price and has made additions as per the order passed by the TPO u/s 92CA(5) making transfer pricing adjustment. Thus, it is very much clear that the reassessment has been made for assessment of income other than the income escaping assessment as per the reasons recorded for formation of belief while initiating proceeding u/s 147 of the Act. The reasons recorded for reopening the assessment has no nexus with the income ultimately assessed u/s 147. In favour of assessee.
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