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2016 (7) TMI 930 - HC - Income TaxReopening of assessment - nature of expenditure - capital expenditure OR revenue expenditure - interest free loan advanced by assessee company to a sister concern - Held that:- Both the issues came up for consideration before the Assessing Officer at the time of original assessment. In the letter dated 27.7.2011, the assessee had given the breakup of the expenditure of sum of ₹ 1.74crores pointing out that the same was closing stock as on 31.3.2009. The assessee also gave breakup of such sums and the purpose for which such expenditure was incurred. In a later communication dated 4.10.2011, the assessee had made a detailed submission why no addition should be made on the ground that the assessee had made interest free advances to a sister concern.Any attempt on part of the Assessing Officer now to revisit such claims would be based on change of opinion. Even the Assessing Officer did not discard the assessee's contention that the claims were originally examined by the Assessing Officer. He in fact, suggested that such examination was not proper and that therefore, the claims were required to be disallowed. Surely, the Assessing Officer was not acting in the capacity of a revisional authority and, therefore, had no jurisdiction to judge the consideration bestowed to these claims by the Assessing Officer. In fact, there is yet another additional ground with respect to the ground of addition recorded in the reasons. The assessee has in the objections pointed out that no such claim of expenditure was ever made and the amount was shown in the closing stock thereby eliminating from the expenditure side, an issue not examined by the Assessing Officer while disposing of such objections at all. Be that as it may, on the first ground itself of the claim having been examined by the Assessing Officer, the petition must succeed. - Decided in favour of assessee.
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