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2014 (1) TMI 1318 - AT - Income TaxAnnulment of re-assessment proceedings u/s 147 of the Act – Allowability of sponsorship expenses – Held that:- The decision in CIT Vs. Orient Craft Limited [2013 (1) TMI 177 - DELHI HIGH COURT] followed - The Assessing Officer reached the belief that there was escapement of income "on going through the return of income" filed by the assessee after he accepted the return under Section 143(1) without scrutiny, and nothing more - This is nothing but a review of the earlier proceedings and an abuse of power by the Assessing Officer - a less strict interpretation of the words "reason to believe" vis-a-vis an intimation issued under section 143(1) can cause to the tax regime -There is no whisper in the reasons recorded, of any tangible material which came to the possession of the assessing officer subsequent to the issue of the intimation. It reflects an arbitrary exercise of the power conferred under section 147 - Even if there is no regular assessment, the review of the earlier proceedings is not possible - original assessment was completed under Section 143(3) and during the course of assessment proceedings, the Assessing Officer examined the aspect of sponsorship expenditure – Decided against Revenue.
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