TMI Blog2011 (12) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... Ms Kavita Jha, Mr Amit Sachdeva and Mr Somnath Shukla, Advocates For the Respondent : Ms Suruchi Aggarwal BADAR DURREZ AHMED (ORAL) 1. The present writ petition is in respect of the assessment year 2004-05. The petitioner is aggrieved by the fact that the assessment in respect of the said assessment year is sought to be re-opened by the Assessing Officer by invoking the provisions of section 147 of the Income Tax Act, 1961 (hereinafter referred to as the said Act ). 2. By virtue of the present writ petition, the petitioner is seeking the quashing of the notice dated 30.03.2010 issued under section 148 of the said Act and also the quashing of all proceedings initiated pursuant thereto including the order dated 13.12.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr Vohra further submitted that the sole issue for consideration was the extent of the expenses which was incurred in relation to earning exempt income in the backdrop of section 14-A of the said Act. He submitted that the assessee had disclosed that it has incurred a sum of Rs. 54,31,565/- towards the portfolio management scheme and a further sum of Rs. 8,10,000/- towards depository charges which were the sum total of expenses incurred towards earning the exempt dividend income of Rs. 195,19,82,701/-. And, the assessee itself had excluded these expenses from the claimed expenditure. 5. Consequently, it was submitted by Mr Vohra that first of all there was a full and true disclosure of the expenses incurred towards earning dividend inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the view that the provisions of sub-sections (2) and (3) of section 14-A as also Rule 8- D would be retrospective in operation. That view has been dispelled by virtue of the decision of this court in the case of Maxopp Investment Ltd v. CIT: ITA 687/2009 decided on 18.11.2011, and other connected matters. He further submitted that even if the said provisions were taken to be retrospective they could not be the ground for re-opening of the assessment in view of this court s decision in the case of CIT v. SIL Investments Ltd: ITA 700-701/2010, decided on 07.05.2010 (2010-TIOL-327-C-DEL-15). 7. Consequently, Mr Vohra submitted that the writ petition ought to be allowed and the impugned notice as also the impugned order ought to be qua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee with regard to the quantum of expenditure of the nature indicated in section 14-A of the said Act. 9. Ms Aggarwal, also drew our attention to Explanation 3 to section 147 and submitted that for the purposes of assessment or re-assessment, the assessing officer may assess or re-assess the income in respect of any issue which has escaped assessment even if such issue comes to his notice subsequently in the course of the proceedings under section 147, notwithstanding that the reason for such issue has not been included in the reasons recorded under sub-section (2) of section 148. She also submitted, with regard to the Explanation 1 to section 147 of the said Act, that mere production before the assessing officer of account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his assessment, for that assessment year: 11. It is absolutely clear that the end of the assessment year in question was on 31.03.2005. Four years from that would take us to 31.03.2009. The notice under section 148 in the present case was issued on 30.03.2010. Therefore, the notice was issued beyond the period of four years from the end of the relevant assessment year. 12. The only ground on which the revenue is seeking to escape from the bar of limitation is that the assessee/ petitioner had failed to disclose fully and truly all material facts necessary for the assessment. We do not see how this can be said. The petitioner had in its return and other information supplied to the assessing officer clearly indicated that it had rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted. Assessed u/s 143 (3) of the Income Tax Act at Rs.16,84,90,040/- Issue necessary forms. (underlining added) 14. From the above it is apparent that necessary details were sought and they were filed and that the assessee had specifically filed details with regard to allocation of expenses. The same was examined by the assessing officer and it is only then that the assessment was finalized under section 143 (3) of the said Act. It would be apposite to note the observations of the Full Bench of this court in the case of Kelvinator of India Ltd (supra) which are as under:- We also cannot accept the submission of Mr Jolly to the effect that only because in the assessment order, detailed reasons have not been recorded an anal ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
