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2015 (5) TMI 901

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..... rejecting the ground raised by the assessee against reopening of assessment u/s 147 of the Act is a non-speaking order particularly when he has not discussed the submissions of the assessee and also did not give the reason in support of his conclusion. As regards to the issue relating to the admission of the legal grounds, it is noticed that the ld. CIT(A) without considering this fact that those grounds raised were purely legal in nature and go to the root of the matter, dismissed the same by stating that there was no reasonable cause for adding the additional grounds of appeal at stage of Appellate Proceedings. In our opinion the ld. CIT(A) ought to have admitted the additional grounds and thereafter he should have decided the same by con .....

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..... med by the appellant u/s 54/54F in respect on new residential property bought against sale of commercial property as alleged by the Learned Assessing Officer. 3. That it is accordingly prayed that the exemptions denied by the Learned Commissioner of Income Tax (Appeals) may kindly be deleted. 4. That the appellant craves leave to add or amend any ground of appeal. 3. The assessee also raised the following additional grounds: On the facts and in the circumstances of the case and in law the CIT(A) erred in rejecting the following two additional grounds of appeal which were sought to be moved before him: 1. The having regard to the facts and circumstances of the case, Ld. AO has erred in law and on facts in not allowing the de .....

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..... laimed u/s 54 of the Act was not allowable. Thereafter the AO issued notice u/s 148 of the Act on 18.11.2011 after recording the reasons and assessed the income u/s 147 of the Act at ₹ 16,09,94,025/- by making an addition of ₹ 4,83,09,106/-. The AO also did not allow the deduction u/s 54 of the Act. 6. Being aggrieved the assessee carried the matter to the ld. CIT(A) and challenged the reopening u/s 147 of the Act and also raised the following additional grounds: 1. That having regard to the facts and circumstances of the case, Ld. AO has erred in law and on facts in not allowing the deduction u/s 54F. 2. In any view of the matter and in any case deduction u/s 54F ought to have been allowed to the appellant. 7. The .....

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..... tze India Ltd. Vs CIT (supra), the Hon ble Apex Court held that the case of NTPC Ltd. is applicable only to the Hon ble ITAT. Furthermore, in the case of NTPC Ltd. Vs CIT (supra), relied upon by the appellant, the appellant had given cogent reasons for including the additional grounds of appeal. To be more precise the reason was that on account of two orders of Special Benches of Tribunal in the case of Arasan Aluminum Industries Pvt. Ltd. Vs First ITO (1 ITD 10 Mad SB) and CIT vs Nagarjuna Steels Ltd. (3 ITD 296 Hyd. SB), the assessee learnt that the interest earned before setting up of business was not taxable as income. On learning about the said legal position, the assessee sought to include the above ground in the ground of appeal. Hen .....

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..... de before the authorities below and further submitted that the additional grounds raised by the assessee before the ld. CIT(A) were purely legal issues which go to the root of matter and did not require fresh facts to be investigated. Therefore, the ld. CIT(A) was not justified in not admitting the additional grounds raised by the assessee. He further submitted that the ld. CIT(A) also rejected the grounds relating to initiation of proceedings u/s 147 of the Act by passing a non-speaking order. Our attention was drawn towards para 4 of the impugned order. 10. In his rival submissions the ld. DR strongly supported the order of the ld. CIT(A). 11. We have considered the submissions of both the parties and carefully gone through the mate .....

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..... the ld. CIT(A) justified the reopening for only on this basis that the notice issued u/s 148 of the Act was within the time limit laid down u/s 149 of the Act and that the AO recorded the reason on the basis of information received from the Directorate of Investigation, Gurgaon, however, he neither discussed the submissions of the assessee nor gave the reasons for rejecting the same. In our opinion the order of the ld. CIT(A) while rejecting the ground raised by the assessee against reopening of assessment u/s 147 of the Act is a non-speaking order particularly when he has not discussed the submissions of the assessee and also did not give the reason in support of his conclusion. As regards to the issue relating to the admission of the lega .....

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