2015 (3) TMI 231

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..... o dispose off the objections submitted by the assessee in view of judgment of Hon'ble Supreme Court decided in case M/s G.K.N. Derive Shafts (India) Ltd.       2. That the Ld. C.I.T. (A) erred in sustaining the addition of Rs. 5,27,396/- made on account of provisions of service tax.        3. That the Ld. C.I.T. (A) erred in sustaining the addition of Rs. 17,50,657/- made by the AO on account of unexplained liabilities u/s 68 of the Income Tax Act, 1961.        4. That the Ld. C.I.T. (A) erred in sustaining the addition of Rs. 16,33,602/- made by the AO on account of remission or cessation of liabilities u/s 41(1) of the Income Tax Act, 1961.   &nb .....

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..... ground of the assessee has challenged the very reopening u/s 148 of the Act and has also assailed it with the help of the judgement of the Apex Court rendered in the case of M/s. GKN Derive Shafts (India) Ltd. while arguing on this ground ld. A.R. Shri Gupta has emphasized only on the validity of the re-opening. His main argument emerged that the A.O. has passed his order u/s 143(3) after considering each and every income and has taken one of the possible view, and that the assessee submitted full and final facts of all the incomes and no new material came to the possession of the A.O .for initiating action u/s 147 r.w.s. 148 of the Act. Therefore, the notice u/s 148 is based on the change of his opinion which is prompted due to his inabil .....

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..... e found it for a fact that no new material came to the possession of the A.O. The assessee had disclosed all the facts of his case fully and truly. In fact the A.O. has missed the bus and has tried to play with the provisions of the Act as per his free will. No authority can be allowed to take a benefit of its mistakes. The provisions of the Ac are very clear. These are not to be carried out simultaneously. It would amount to misuse of the provisions of the Act in case we accept the contention of ld. D.R. that the A.O. can put into use all the provisions of the act at his sweet will. This is not the intention of the legislation. The A.O. has, in fact, not applied his mind to form his opinion regarding the escapement of income. He has simply .....

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