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2018 (9) TMI 340 - ITAT CHENNAIReopening of assessment - loss from mutilated currency notes claimed as business loss/business expenditure in computation of taxable total income - deduction u/s 37 - Held that:- the income chargeable to tax was underassessed during the course of scrutiny assessment under section 143(3) of the Act and therefore, the Assessing Officer reopened the assessment. Explanation 2 to section 147 of the Act envisages that if the income chargeable to tax was underassessed, the Assessing Officer can reopen the assessment and brought the underassessed income to tax - the appellate order dated 19.11.2012 has not influenced the Assessing Officer to reopen the assessment, which was completed under section 143(3) of the Act, but for underassessment. Under the above facts and circumstances, we are of the considered opinion that the assessment was validly reopened under section 147 Loss from mutilated currency notes - Vide circular No.RBI/2012-13/562 [DCM(FNVD) No. 5840/16.01.05/ 2012-13] dated 27.06.2013 addressed to the CMD/CEO of all Scheduled Commercial Banks, while deciding to compensate the banks 25% of the loss incurred in respect of counterfeit notes of ₹.100 and above detected by them and reported to RBI and Police Authorities, it was also emphasised in the Extract of Monetary Policy Statement 2012-13 to streamline their system in a manner which will make them bear the risk of counterfeit bank notes rather than the common man who unknowingly comes in possession of such notes. Admittedly, the assessee is engaged in trading in gold bullion and there is every possibility of getting mixed the mutilated notes during the course of his business. In the assessment year 2008-09, the Assessing Officer allowed the loss to the extent of 20% of total claim of the assessee. Similarly, we direct the Assessing Officer to allow the loss to the extent of 20% in the assessment year 2009-10. Disallowance of interest for want of TDS on the application of section 40(a)(ia) in the computation of taxable total income - assessee failed to furnish the details of interest paid and TDS thereon - Held that:- On appeal, by following the decision in the case of Palam Gas Services v. CIY [2017 (5) TMI 242 - SUPREME COURT] wherein it was held that “Word ‘payable’ occurring in section 40(a)(ia) of the Act not only covers cases where amount is yet to be paid, but also those cases, where amount has actually been paid”, the ld. CIT(A) confirmed the disallowance - no infirmity in the order passed by the ld. CIT(A) and thus, the ground raised by the assessee stands dismissed for the assessment year 2008-09.
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