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2017 (11) TMI 1913 - ITAT CUTTACKReopening of assessment u/s 147 - new tangible material found or not? - HELD THAT:- It is not in dispute that at the time of original assessment, the AO verified the materials consumed, labour charges, transportation charges & postage and telephone charges and after examining the same made some disallowance on such expenses. AO has changed his mind to reopen the assessment. As observed that in the body of the order u/s.143(3), the Assessing Officer had particularly mentioned that he had examined the details and after examining the details only, he had disallowed certain expenses from transportation charges, labour charges. In the assessment year 2005-06 in the case of the assessee itself, on similar situation, the reopening of assessment u/s.147 of the Act was treated as bad in law by this Bench of the Tribunal and following the same, the CIT(A) has quashed the reassessment u/s.147. We find that similar issue has been considered in the case of CIT vs. Kelvinator of India Ltd [2002 (4) TMI 37 - DELHI HIGH COURT] wherein, it has been held that held that an order which has been passed purportedly without application of mind would itself confer jurisdiction upon the AO to reopen the proceeding without anything further, the same would amount to giving a premium to an authority exercising quasi-judicial function to take benefit of its own wrong. The decision is approved in the case reported as CIT vs. Kelvinator of India Ltd [2010 (1) TMI 11 - SUPREME COURT]. AO has initiated reassessment proceedings on the same facts which were available before him at the time of making assessment u/s.143(3) and no new tangible material has come on the basis of which it could be said that he has reason to believe that income chargeable to tax has escaped assessment on account of failure on the part of the assessee to disclose truly and fully material of facts for the assessment. No reason to interfere with the order of the CIT(A) and accordingly, confirm the same and dismiss the grounds of appeal filed by the revenue.
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