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2024 (1) TMI 801 - HC - Income TaxReopening of assessment u/s 147 - deduction claimed by the petitioner for a sum towards advertising and marketing expenditure for Model Flat and New Sales Office Expenses Exclusive and Market Expenses Express - as per DR no corresponding income from the project for which the expenses were incurred and Respective projects may not have started during the relevant to the previous year for the assessment year - HELD THAT:- Since no revenue was recognized expenses incurred under the head marketing and sale expenses have been classified work in progress which should not have been reckoned as revenue expenditure. The second issue is regarding capitalised of a sum towards Loan Processing Charges pursuant to closure of the loan and switching over of the loan. This was not an issue that was raised before the aforesaid AO dated 27.11.2019 was passed. There was only disclosure in the Financial Statements that were filed by the petitioner before the Assessing Officer before the Assessment Order was passed on 27.11.2019. Notice issued u/s 148 is dated 30.03.2021. It is before the expiry of 4 years. If the income has escaped assessment, invocation of Section 148 of the Income Tax Act, 1961 cannot be interfered. There is no final determination of the tax liability in the impugned order dated 04.02.2022 seeking to reopen the assessment that was completed vide Assessment Order dated 27.11.2019. It is open for the petitioner to urge that the deductions claimed by the petitioner were perfectly in order and therefore question of adding the amounts back to the taxable income of the petitioner would not arise. Therefore, this writ petition is liable to be dismissed. Accordingly, this writ petition is dismissed. Liberty is however given to the petitioner to raise all objections before the Assessing Officer under Section 143(3) r/w 147 & 148 of the Income Tax Act, 1961 as it stood prior to 01.04.2021.
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