Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (3) TMI 1261 - HC - Income TaxReopening of assessment - wrong deduction claimed by Assessee under Section 35(2AB) - Held that:- from the orders passed by Commissioner of Income Tax (Appeals) and Tribunal, it is evident that entire facts relating to aforesaid deduction were disclosed by Assessee in the return filed by him and deduction was allowed initially when the order of assessment was passed on 22.12.2006. Thereafter a notice was issued under Section 154 of Act, 1961 to assess three amounts including relating to deduction under Section 35(2AB). Assessee filed letter dated 28.07.2007 explaining reasons for which additions could not be made and said that deduction under Section 35(2AB) was correctly claimed. Matter, thereafter, went in appeal. In these facts and circumstances Tribunal has found that there was a complete disclosure of all relevant facts by Assessee with regard to the amount claimed as deduction under Section 35(2AB) and that being so, question of escape assessment giving rise to re-assessment under Section 147/148 of Act, 1961 does not arise as it amounts to change of opinion. - Decided in favour of assessee Adoption of correct method of accounting - Held that:- Section 145 (1) permits two process of accounting and it is not the case of appellant that double entry system of account is not a recognized mercantile system of accounting provided under Section 145(1) and in absence of anything shown otherwise, we find nothing wrong in the method of accounting adopted by Assessee and, therefore, this question is also answered against Revenue.
|