9911796707
TMI Blog2011 (10) TMI 464X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income Tax Act 1961 proposing to reopen an assessment for Assessment Year 2004-05 together with an order dated 25 July 2011 dealing with the objections of the Petitioner. 3. During the financial year 2003-04 the Petitioner entered into a financial restructuring arrangement with its lending institutions by which the lenders agreed to waive/forego accumulated finance cost in the amount of Rs.20.58 Crores. The payments of the balance agreed amounts were rescheduled. According to the Petitioner, as per the settlement terms, the waiver of interest was subject to the Petitioner paying the agreed balance liability in the manner it was rescheduled, failing which the lenders had a right to withdraw the concessions given by waiver of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt waiver of interest. A notice under Section 143(2) was issued to the Petitioner on 24 August 2004 followed by a further notice under Section 142(1) along with a questionare on 21 July 2006. The Petitioner attended hearings and furnished details which were called by the Assessing Officer from time to time. On 27 December 2006 an order of assessment was passed under Section 173(3) accepting a loss of Rs.7.10 Crores disclosed by the Petitioner. 5. On 29 March 2011 a notice was issued under Section 148 by the Assessing Officer stating that he had reason to believe that the income which is chargeable to tax for Assessment Year 2004-05 had escaped assessment within the meaning of Section 147. By a letter dated 28 April 2011 the Petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l portion of the loan waived was not offered for taxation. 8. On the other hand, counsel appearing on behalf of the Revenue has reiterated the reasons which were furnished and submitted that the reopening is for valid and proper reasons. 9. Notice was issued in these proceedings on 5 October 2011 and the Assessing Officer was placed on notice that the petition would be heard finally at the stage of admission. No reply has been filed despite an opportunity which has been given to the Assessing Officer. 10. The reopening of the assessment in the present case is beyond the period of four years of the end of the relevant assessment year. In such a case, the power of the Assessing Officer is structured by the requirement, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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