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2015 (9) TMI 604 - AT - Income TaxReopning of assessment - basis of reopening of the assessment order was lesser figure of total turnover - Held that:- It is undisputed fact that AO had not borrowed the satisfaction from the audit party as nowhere in the satisfaction he has mentioned the audit objection. As per his working in reasons recorded excess deduction had been calculated at ₹ 27,66,386/- on the basis of total turnover of ₹ 16,82,67,037/- whereas the assessee has taken total turnover in computation made by the CA in prescribed form at ₹ 15,39,35,866/- but this issue has not been considered by the AO at the time of completing the assessment. He simply reduced the other income from total income ₹ 1,43,31,171/- which includes interest at ₹ 12,14,227/-, dividend income of ₹ 32,550/- and brokerage and commission income of ₹ 12,736/- and business profit has been calculated at ₹ 3,12,21,537/- in place of ₹ 3,24,81,050/- shown by the assessee. It is clear that ld. AO had not made any addition on the basis of reopening or satisfaction recorded. AO has not made any addition on the basis of formation of believe under section 147 of the IT Act. The AO has power as per Explanation 3 to include the items of income which came to his notice subsequently in the course of proceedings under this section for which no separate reopening is required, but in final out come both the additions have to be made by the AO in assessment order which has not been the case of AO during the year under consideration as he has not made any additions on the basis of total turnover. - Decided against revenue.
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