Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (6) TMI 745 - AT - Income TaxValidity of Reopening of assessment u/s 147 - computation of deduction u/s 80M - Whether Tribunal was right in law in holding that reopening of assessment is valid on the ground that the appeal of the assessee does not arise out of the reasons recorded for reopening ignoring the grounds of appeal taken before it? - HELD THAT:- As it is evident from the computation of income that the assessee had disclosed full details of its claim in respect of interest accrued but not due in the computation of income furnished along with the return of income. The whole basis of reopening was the aforesaid computation along with notes thereon as furnished by the assessee along with the return of income. In other words, there was no new tangible material before Ld. AO to reopen the case of the assessee and the reopening was based on existing material already available on record. In such a case, the reopening would become mere review of the order which is impermissible as per the decision of Hon‘ble Supreme Court in CIT V/s Kelvinator of India Ltd. [2010 (1) TMI 11 - SUPREME COURT] We are of the opinion that the formation of belief has to be on the basis of some fresh tangible material or new information which is not the case here. This being so, reassessment proceedings are liable to be quashed on legal grounds. The aforesaid conclusion also find support from the decision of Hon’ble High Court of Madras in Tanmac India V/s DCIT [2017 (1) TMI 122 - MADRAS HIGH COURT] wherein reassessment was held to be not justified since the same was sought to be initiated on the basis of return of income and enclosures thereto which was already part of record. Similar is the ratio of decision in Pr. CIT V/s M.R.Narayanan [2021 (6) TMI 825 - MADRAS HIGH COURT] as well as in CIT V/s RPG Transmissions Ltd. [2014 (2) TMI 238 - MADRAS HIGH COURT] Considering the ratio of aforesaid binding judicial pronouncements, the reassessment proceedings are liable to be quashed. We order so. The legal grounds urged by the assessee stand allowed.
|