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2017 (11) TMI 957 - AT - Income TaxReopening of assessment - addition of bonus/commission paid to the directors - reopening simply on the basis of audit report in Form no.3CD - non independent application of minD by AO - Held that:- Undisputedly, in case of assessee, assessment was originally completed under section 143(3) of the Act on 30th November 2007. Assessing Officer has passed a detailed order after verifying all facts and materials brought on record and in the process has made a number of disallowances. Thus, it is not a case where the Assessing Officer has passed a cryptic assessment order accepting the returned income. Further, from the reasons recorded which is reproduced in the impugned assessment order, it is evident that the Assessing Officer on verifying the audit report in form no.3CD was of the view that the bonus / commission paid of ₹ 1.90 crore to the directors is excessive, hence, the entire amount is not allowable. Thus, as could be seen from the reasons recorded, the re–opening of assessment was simply on the basis of audit report in Form no.3CD filed by the assessee along with the return of income and was available before the Assessing Officer at the time of original assessment proceedings under section 143(3) of the Act. Thus, it is very much clear that after completion of original assessment proceedings, no fresh and tangible material has come to the possession of the Assessing Officer revealing escapement of income. Formation of belief on the basis of materials already available before the Assessing Officer and examined by him in the original assessment proceedings, amounts to change of opinion, hence, impermissible - Decided in favour of assessee.
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