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2021 (2) TMI 731 - AT - Income TaxReopening of assessment u/s 147 - Validity of notice issued - non specification of reasons to believe - CIT-A quashed notice - HELD THAT:- In the instant case, there is no mention in the notice issued u/s 148 of the I.T.Act that escapement of income was due to failure on the part of the assessee to make true and full disclosure of income. On the facts and circumstances of the case, since the A.O. in the original assessment has considered the entire issue and concluded the assessment, the reassessment initiated after four years from the end of the relevant assessment year is on account of mere change of opinion, which is not permissible in law. Therefore we confirm the CIT(A)’s order in quashing the reassessment proceedings. Estimation of income - NP determination - CIT(A) had categorically found net profit is at the rate of 18.13% of the sales for the year, and therefore, for gross profit of 16.29% arrived at by the A.O. is factually incorrect. It was also found by the CIT(A) that N.P. of 18.13% is higher than NP declared for the previous assessment year and the subsequent assessment year. The above categorical finding of the CIT(A) has not been dispelled by the Revenue by placing any contra evidence. In the light of the finding of the learned CIT(A), which was not controverted by the Revenue, we uphold the impugned order of the CIT(A) as correct and in accordance with law. Revenue appeal dismissed.
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