Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 398 - AT - Income TaxReopening of assessment - Non deduction of tds - Held that:- As during the original scrutiny assessment proceedings u/s 143(3), the AO had issued detailed questionnaire to the assessee seeking information relating to contract and sub-contract works, supervision fee, legal & professional Services etc and TDS compliance thereon; and the assessee has duly replied the questionnaire and complied with the said notice by submitting information regarding the same and further information sought by the AO thereupon has been found to have been complied with. We further take note that questionnaire of AO dated 27.10.2008 sought information pertaining to the impugned reopening vide question no. 19 and the assessee in response to it had filed reply to it on 26.11.2008 and 03.12.2008 which have also been before the AO during the original assessment. So, it cannot be said that the assessee has failed to disclose any material fact before the AO during the original scrutiny assessment. We further concur with the view of the ld. CIT (A) that there has been no failure which could be attributed to the assessee of not disclosing fully and truly all relevant primary material facts necessary for completion of assessment because in the reasons itself it was mentioned, “as per column 27(a) of the Audit Report, it is stated that the assessee has not deducted tax at source in accordance with the provisions of chapter.". This averment in the reasons recorded for reopening is itself copied from the very same audit report of the assessee which was furnished with the original return of income. Thus, we find that the assessee has truly and completely disclosed all material facts relating to all the expenses at the time of scrutiny assessment proceedings itself and the AO, after scrutinizing the details furnished by the assessee in the course of scrutiny assessment, has passed the original assessment order u/s 143 (3) of the Act. Therefore, we concur with the CIT (A) that no new facts were brought on record which can be the basis for reasons to believe that the income of the assessee had escaped assessment and, therefore, the reopening of assessment in the present case had been merely on the basis of change of opinion, which is not permissible in the eyes of law. Therefore, we uphold the view of the ld. CIT (A) that this is not a fit case for reopening of assessment. - Decided in favour of assessee
|