9911796707
TMI Blog2012 (11) TMI 986X X X X Extracts X X X X X X X X Extracts X X X X ..... y assessed to tax. For the assessment year 2004-05, the petitioner filed its return of income on 01.11.2004 declaring total loss of Rs. 6,11,241. Such return was taken in scrutiny. After raising certain queries and eliciting response from the petitioner, the Assessing Officer framed scrutiny assessment under section 143(3) of the Income Tax Act, 1961 ("the Act" for short) on 29.9.2006 in which he assessed the petitioner's loss at Rs. 5,47,260/-. 2.1 It was this assessment which was framed after scrutiny that the Assessing Officer desired to reopen for which the impugned notice dated 25.7.2008 came to be issued. This is, thus, a case of reopening of assessment within a period of four years from the end of relevant assessment year. 2.2 At t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to reopen the assessment. The Assessing Officer in the original assessment, had examined the issue on which now the reopening is sought to be made. Such attempt, therefore, would be nothing more than a mere change of opinion. 2.4 The Assessing Officer disposed of such objections by his order dated 15.4.2009. The petitioner, thereupon, filed the present petition challenging the notice of reopening. 3. Appearing for the petitioner, learned counsel Shri Soparkar submitted that the reasons recorded do not give jurisdiction to the Assessing Officer to reopen the assessment. During the course of scrutiny assessment, the Assessing Officer had raised several queries, one of them pertained to the entrance fees received from the members during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of India Ltd. [2010] 320 ITR 561, to point out that even after the amendment in section 147 of the Act with effect from 1.4.1989, the concept of change of opinion is not given a go-bye. 4. On the other hand, learned counsel Ms. Mauna Bhatt for the Department submitted that the assessment previously framed is sought to be reopened within the period of four years from the end of the relevant assessment year. Merely because certain material was on record, therefore, would not prevent the Assessing Officer from reopening the assessment unless it is pointed out that he had in the original assessment, formed any opinion with respect to such an issue. Counsel further submitted that the assessee's letter dated 16.6.2008 did not contain the annexu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded. The Assessing Officer desires to reopen the assessment on the ground that the assessee received a total sum of Rs. 5,56,000/- during the accounting year relevant to the assessment year 2004-05 by way of entrance fees from the members which amount has been taken by the assessee to the capital reserve. While framing assessment for the assessment year 2005-06, the Assessing Officer elaborately discussed the issue and taxed such a transaction treating the entrance fees as sale of membership. He was, therefore, of the opinion that similar treatment ought to have been accorded for the assessment year 2004-05. He, therefore, recorded that he had reason to believe that the amount of Rs. 5,56,000/- had escaped assessment for the assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder consideration by the Assessing Officer. In the question, the Assessing Officer had asked for complete details of members from whom entrance fees were received during the year, along with income tax particulars of such members. From this question, it cannot be stated that the Assessing Officer desired to examine the taxability of the entrance fees received from such members. The question of treating such entrance fees either as capital receipt or revenue receipt, therefore, was not part of such a query and therefore, the angle of taxability of such a receipt being a receipt of revenue in nature, cannot be stated to be a part of the query raised by the Assessing Officer. It is true that in response to such a question, the assessee in add ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
