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2016 (9) TMI 1007 - HC - Income TaxReopening of assessment - disallowance of loss - Held that:- Assessing Officer examined the issue at length in the original assessment order and came to the conclusion that the transactions were not off market transactions and that therefore, the loss suffered by the assessee cannot be disallowed. Whatever be the validity of such findings, surely the Assessing Officer himself cannot question the same by issuing the notice for reopening, that too without there being anything additional on record, suggesting that the assessee had not disclosed true and full facts. In the reasons recorded, the Assessing Officer does not even comment on the fact that M/s.Nitin Parikh and Co. were the sister concerns, a ground vaguely sought to be made out by the counsel for the Revenue. Assessing Officer merely hinted at lack of disclosure regarding the so called self inflicted loss. He did not even refer to the assessee's lack of disclosure of M/s.Nitin Parikh and Co. being sister concern. In any case, in the order of assessment itself, the Assessing Officer was actually aware about the fact that M/s.Nitin Parikh and Co. was a part of the group of companies of which the assessee was also one of the members. We have reproduced the relevant portion of para 5 of the order of assessment, in which the Assessing Officer himself refers to M/s.Nitin Parikh and Co. as one of the group concerns. His consideration of the issue of allowability of the loss was therefore not tainted by any misdeclaration by the assessee. Once therefore, when the issue was thoroughly examined in the original order of assessment, it was simply not permissible for the Assessing Officer to reopen the assessment on such basis without there being any suggestion that the Assessing Officer was in possession of some external material which would show that the assessee had not show truly and fully all material facts.
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