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2015 (2) TMI 719 - HC - Income TaxRe-opening of assessment u/s 147/148 - issue of commission paid having not been covered by the reasons recorded within the meaning of Section 148(2) as such the reopening is not valid under the law - Held that:- In the instant case, it is not the case of the assessing authority that during the course of proceedings under Section 147 it came across any material relating to the payment of commission suggesting escapement of income under any of the heads. On the other hand, the Ist Appellate Authority has given a categorical finding that the assessee had claimed as expenditure the commission of ₹ 58,59,913/- in his Trading and Profit and Loss Account and the same was available on the record. Consequently, in the absence of any information having been received by the assessing officer regarding escapement of commission income during the course of proceedings under Section 147 of the Act, he could not have formed an opinion on this issue that it has escaped assessment. Further, the reasons to believe does not record the factum of escapement of commission. See CIT vs. M/s Sun Engineering Works (P.) Ltd.[1992 (9) TMI 1 - SUPREME Court] and Vipin Khanna vs. Commissioner of Income-Tax [2000 (7) TMI 2 - PUNJAB AND HARYANA High Court]. Ist Appellate Authority was justified in deleting the addition of commission, on the ground, that it was not covered by the reasons recorded under Section 148(2) of the Act. - Decided in favour of assessee.
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