9911796707
Case Laws
Acts
Notifications
Circulars
Classification
Forms
Manuals
Articles
News
D. Forum
Highlights
Notes
🚨 Important Update for Our Users
We are transitioning to our new and improved portal - www.taxtmi.com - for a better experience.
⚠️ This portal will be fully migrated on 31-July-2025 at 23:59:59
After this date, all services will be available exclusively on our new platform.
If you encounter any issues or problems while using the new portal,
please let us know
via our feedback form
, with specific details, so we can address them promptly.
Follow us:
|
Home
Issues:
Reopening of assessments under s. 147(b) of the IT Act, 1961 based on new information regarding sundry expenses claimed by the assessee firm. Analysis: The appeals by the assessee firm, relating to the assessment years 1974-75 and 1975-76, revolve around the reopening of assessments by the Revenue based on new information received post the original assessments. The Revenue claimed that the sundry expenses claimed by the assessee contained non-admissible expenses. The Income Tax Officer (ITO) disallowed a portion of these expenses in the original assessments. Despite objections by the assessee, reassessments were framed under s. 143(3)/147 of the Act, resulting in higher reassessed incomes for both years. The Commissioner (Appeals) upheld the reopening of assessments and the reassessments, citing lack of details provided by the assessee on sundry expenses and the inadmissible nature of certain expenses. The assessee challenged this decision in second appeals, arguing that there was no failure to disclose material facts under s. 147(b) and that the assessments had become final. The assessee contended that the ITO had all necessary details during the original assessments, and therefore, there was no basis for reopening under s. 147(b). After considering the submissions, the Tribunal found that the ITO had all relevant information during the original assessments, including details of sundry expenses. The reassessment proceedings were not based on new information within the meaning of s. 147(b). As a result, the Tribunal quashed the notices for reassessment and the Commissioner's order, allowing the appeals by the assessee. In conclusion, the Tribunal held in favor of the assessee, ruling that the reassessment proceedings under s. 147(b) were unwarranted as the ITO had all necessary information during the original assessments. The Tribunal emphasized that there was no new information to justify the reopening of assessments, leading to the quashing of the reassessment notices and the Commissioner's order.
|
