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2017 (5) TMI 1043 - AT - Income TaxReopening of assessment - non-issuance of notice u/s.143(2) before completion of assessment - addition u/s 36 - Held that:- AO is within this jurisdiction to initiate the provisions of the section 143(3) of the Act only on satisfying the first condition noted above and failure to take steps u/s.143(3) of the Ace will not render the AO powerless to initiate the re-assessment proceedings. See CIT Vs. Rajesh Jhaveri Stock Brokers P. Ltd in [2007 (5) TMI 197 - SUPREME Court] wherein held that the Assessing Officer had jurisdiction to issue notice under section 148 for bringing to tax income escaping assessment in an intimation under section 143(1)(a) on the ground that the claim for bad debts by the assessee was not acceptable as the conditions for allowance specified in section 36(1)(vii) and (2) were not fulfilled. Accordingly, re-opening is valid in law. Regarding nonissue of notice u/s.143(2) of the Act where was no return filed by the assessee in response to notice u/s.148 of the Act and the return was not pending for assessment, there is no question of issuing of notice u/s.143(2) of the Act. Being so, we are of the opinion that the nonissue of notice u/s.143(2) of the Act does not make the assessment bad in law. - Decided in favour of revenue Disallowance of advertisement expenses - Held that:- Similar issue came for consideration before this Tribunal in assessee's own case for assessment year 2012-13 wherein held that the expenditure incurred on advertisement being a revenue expenditure was allowable in full Disallowance u/s.40(a)(ia)- non-deduction of TDS on interest paid bythe assessee on the loan availed from the MBFC - Held that:- Similar issue came for consideration before the Hon’ble supreme Court in M/s.Palam Gas Agencies Vs. CIT [2017 (5) TMI 242 - SUPREME COURT] wherein held that the provisions of the section 40(a)(ia) is applicable to both paid and payable. Hence, we allow the ground taken by the Revenue.
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