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2017 (11) TMI 328 - HC - Income TaxReopening of assessment - proof of case of change of opinion - petitioner's/assessee's contention is that, there was no specific direction issued by CIT (A) to re-open the assessment, and it is a misreading of the order passed by CIT (A), dated 13.10.2016 - Held that:- We do not agree with the said submission in the light of the language and observations made by CIT (A) in his order, dated 13.10.2016. The reasons for deleting the addition made in the hands of the assessee-Firm for the year 2012-13, is because, the capital was required to be introduced in the course of earlier two financial years, i.e. FY 2009-10 and F Y 2010-11. The CIT (A) did not stop with this observations, but made further observation by stating that, the Assessing Officer can only take cognizance of the matter, by way of initiating suitable proceedings for the assessment years 2010-11 and 2011-12. The petitioner seeks to interpret the word 'Can' by stating that, it cannot be construed as direction, but the petitioner should read the word 'Can' along with next word 'Only. CIT(A) has pointed out that the Assessing Officer can only take cognizance of the matter, by way of initiating suitable proceedings for the assessment years 2010-11 and 2011-12. In such circumstances, it cannot be taken, as if, the observation contained in the order passed by CIT(A) is of no consequence. Such plea cannot be raised by the petitioner/assessee, as it would be fatal to their case, because, it is only on account of such observations, they got relief before CIT (A). The above observations were affirmed by ITAT. Even assuming for the sake of arguments that, there is no specific direction, in the order passed by CIT (A) yet, the Assessing Officer was entitled to exercise his powers under Section 148 as there was no opportunity to verify the transactions claimed to have made in those years. Therefore, it is not a case of change of opinion. Consequently, the challenge to the impugned proceedings has to necessarily fail. - Decided against assessee.
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