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2009 (11) TMI 35 - HC - Income TaxReasons for reopening of an assessment – power under section 148 – held that - From the return of income filed by the petitioner, the Assessing Officer had found that the petitioner had earned interest on deposits to the tune of Rs.12,80,258/- and that they sought deduction of a sum of Rs.9,26,830.84 towards admissible expenses that included the general administrative expenses, vehicle maintenance, salaries etc. The losses brought forward from the previous assessment years were also set off and the petitioner claimed a total income of only Rs.3,02,626.16. It is this that prompted the second respondent to issue a notice under Section 148 - The Assessing Officer has taken a stand, prima facie, that the expenditure debited to the profit and loss account under various heads are not incidental to the earning of interest income. Therefore the stand taken by the second respondent that he has reason to believe that certain income chargeable to tax escaped assessment, cannot be said to be vague, irrational or devoid of any basis.
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