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2016 (8) TMI 275 - HC - Income TaxReopening of assessment - Possible MAT liability - Held that:- The Assessing Officer noted that in the order of assessment, book profit of the assessee was worked out at ₹ 51.85 crores. The MAT liability would work out to ₹ 57.1 crores. Since the tax liability on the assessee as per the normal computations is higher than the tax liability under the MAT provisions, at present there is no tax liability arising. However, if the assessee succeeds in appeal against the order of assessment, the question of applying MAT provisions would arise.Providing the same safeguards as mentioned in the said order, this ground of the Assessing Officer for reopening is turned down. Claim of deduction on account of bad debts - Held that:- In the final order of assessment, the Assessing Officer made no disallowance against this claim. In other words, without giving reasons he accepted the petitioner’s version of written off of the bad debts of ₹ 11.18 crores. The Assessing Officer having scrutinized the claim in the final order of assessment accepted the claim though without stating the reasons. Any attempt on his part to reopen the issue is based on change of opinion. Claim of expenditure under the head of ‘Professional Services and Legal Fees’- Held that:- This amount of ₹ 3.15 crores which the Assessing Officer disputes by way of expenditure was never claimed as such in the original return itself. The audited account referred to a larger sum of ₹ 4.38 crores which was amortised and the break up of premium amortised during the period under consideration includes a total of ₹ 3.15 crores which is a total of premium with respect to 5 different investments. This precise figure which the Assessing Officer wants to take into consideration for the purpose of disallowance as capital expenditure. When we find that no such claim of revenue expenditure was made, the essential requirement of income chargeable to tax having escaped assessment on this ground fails.
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