TMI Blog2013 (12) TMI 1423X X X X Extracts X X X X X X X X Extracts X X X X ..... sale price in advance was clearly in the nature of trading receipt and the entire amount is clearly assessable as income of the assessee - The adjustment on account of refunds should be made in the year in which the deposits was actually received between the assessment year 75-76 to 77-78 - Decided against assessee. - I.T.A. No.24 of 2000 (O&M), I.T.A. No.25 of 2000 (O&M), I.T.A. No.26 of 2000 (O&M) - - - Dated:- 21-12-2013 - Rajive Bhalla And Dr. Bharat Bhushan Parsoon,JJ. For the Appellant : Mr. Aalok Mittal, Advocate For the Respondent : Mr. Gaurav Hooda, Advocate ORDER Dr. Bharat Bhushan Parsoon, J These three appeals arise out of a common order (Annexure P- 3) passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar (hereinafter referred to as, the Tribunal) in ITA Nos.328 to 330/ASR/1993 pertaining to the assessment years 1975-76, 1976-77 and 1977-78. 2. Point of law and factual matrix in these three appeals being similar, these have been taken up together for adjudication. For convenience and clarity, facts have been taken from ITA No.24 of 2000. 3. The appeal has been preferred by the assessee on the following substantial questions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r issuance of notices under Sections 142(1) and 143(2) of the Act, yet another exparte assessment order was made on 27.2.1989 taking income as Rs.2,96,260/-. This exparte assessment order also met the same fate when it was set aside vide order of 7.2.1990 of the CIT(A). 7. On receipt of notices, the assessee had sought certain directions under Section 144-A of the Act. The matter was disposed of on 5.2.1992. Making various additions i.e. of Rs.5,000/- on account of undisclosed income qua octroi, of Rs.94,368/- on account of undisclosed income from Post Warranty Services Scheme and of Rs.1,33,417/- on account of undisclosed income from Sundry World Bank Account, total taxable income was computed at Rs.2,96,260/- (Annexure P1). 8. As per order dated 18.1.1993 (Annexure P2) of CIT(A) in appeal though addition on account of Post Warranty Service Account was deleted, yet other additions made by the Assessing Officer (hereinafter referred to as, the AO) were upheld. Vide impugned order (Annexure P3), the Tribunal, upholding validity of reopening of the case and consequent assessment under Section 148 of the Act, had affirmed the order of the CIT(A) but had issued directions to the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nty period. 13. Plea of the appellant-assessee is that addition of Rs.1,33,417/- made by the AO and subsequently reaffirmed by the CIT(A) and the Tribunal with the minor relief of refunds (already paid) is perverse and erroneous and thus is unsustainable in law. It is urged that even when viewed in terms of Section 147 and 148 of the Act, the Tribunal erred in law and it did not appreciate the fact that it was a case of non-issuance of notice under Section 148 of the Act. It is thus urged that there being no show cause notice issued to the assessee prior to the reopening of the case for reassessment, entire edifice of the revenue culminating in the impugned order (Annexure P-3) of the Tribunal crumbles. 14. Per contra, stand of the revenue is that additions were correctly made by the AO and were rightly affirmed by the CIT(A) and were thus reaffirmed by the Tribunal and that there was nothing bad in law qua these additions. It is also urged that reopening of the assessment was preceded by disclosure of reasons which were recorded in terms of Section 148(2) of the Act, whereupon notice in terms of Section 148(1) of the Act was duly given to the assessee and thus, there was nothi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal, endorsing the view of the AO, the Tribunal had held, action of the AO in reopening the case under Section 147 of the Act as also of service of notice under Section 148(1) of the Act on the assessee through its representative, to be valid and legal. 17. So far as matter of making of additions on the stated counts is concerned, neither before the AO nor before the CIT(A) nor even before the Tribunal, the assessee had been able to show that expenditure on account of payment of octroi had, in fact, been made by it. In absence of supporting entries showing payment of the octroi, the AO was right in making addition of Rs.5,000/-, Rs.8,000/- and Rs.15,760/- on account of octroi charges for the assessment years 1975-76, 1976-77 and 1977-78 respectively. The Tribunal was right in affirming such addition made by the AO. 18. So far as addition made on account of Sundry World Bank Account is concerned, plea of the assessee is that amount paid in advance for the purchase of imported tractors under the World Bank Scheme used to be adjusted against the cost of the tractor on the date of the delivery and thus there was no good ground for making addition towards income of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffirmed by the Tribunal as it did not find any infirmity in such findings given by the CIT(A). These findings rather were found to be in accordance with law by the Tribunal and, thus, were upheld. 23. So far as additions made on account of Post Warranty Service Account are concerned, the CIT(A) had deleted those additions by making the following observations: As regards the addition made on account of P.W.S. (Post-Warranty Service account), the same cannot be sustained in view of the fact that addition made on this basis in assessee's own case for the assessment years 1978-79 to 1983-84 has been deleted by the Hon'ble ITAT Chandigarh Bench. The order of the I.T.A.T. in assessee's own case is required to be followed even if a reference is pending- (Union of India V. Kamlakshi Finance Corporation Limited-AIR-1992 (Supreme Court)-711. Respectfully following the decision of the Hon'ble ITAT, the addition made on account of P.W.S. for all the three years is deleted. 24. No appeal was preferred against this particular adjudication by the revenue. 25. From totality of facts and circumstances, it is, thus, clear that reopening of the assessment being in conformity with the provis ..... 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