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TMI Blog2015 (6) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... fter the expiry of four years from the end of the relevant assessment years and therefore, such a reopening is bad in law in view of the proviso to section 147. ii) Disallowance u/s 14A. iii) Disallowance of depreciation on computer software. 2. The brief facts qua the legal issue raised vide ground 1 to 4 are that, assessee is a public undertaking engaged in the business of banking and allied activities. The assessee bank was later on merged with the State Bank of India on 13.08.2008. The return of income for the A.Y. 2001-02 was filed on 28.02.2002 at 'Nil' after claiming set off OF carried forward losses to the extent of Rs. 59,61,23,649/-The said return was duly processed u/s 143(1) on 09.09.2002. Thereafter the assessee's case was s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome for A.Y. 2001-02 on this ground is worked out as under:- 3. Interest accrued but not due on investment is worked out as under:- Interest Accrued but not due as at end of assessment year Rs.826397428/- Less: Interest Accrued but not due as at beginning of assessment year Rs.662014992/- Net Difference Rs.164382436/- 4. Amount of accrued interest during the year Rs. 16,43,82,436/- which is to be added back and is taken as the income of the year and the same is required to be taxed accordingly. As a result of which income chargeable to tax has escaped assessment. 5. In view of the above, I have to reason to believe that income chargeable to tax has escaped assessment and the case is fit for issue of notice u/s 148 of the I. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en that, merely because in the A.Y. 2003-04, the interest accrued but not due has been taxed by the AO and confirmed by the Ld. CIT(A), therefore, the completed assessment has been reopened for the A.Y. 2001-02. In the reasons recorded no failure has been ascribed on the part of the case. Thus reopening of the assessee is bad-in-law. In support of his contention, he strongly relied upon the decision of Hon'ble Bombay High Court in case of Talati and Panthakly Associate P. Ltd. Vs. DCIT reported in (2014) 362 ITR 362 (Bom). 5. On the other hand, Ld. DR strongly relied upon the order of the Ld. CIT(A) and submitted that fresh material has come on record in the form of assessment order and Ld. CIT(A) order for the subsequent assessment years. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned, it is evident from the record that the assessee has duly disclosed all the details of interest due and receivable and interest due and accrued during the year not only in the books but also in the statement of audited accounts. In the statement of interest on the securities for the period of 01.04.2000 to 31.03.2001 as appearing in the audited accounts the details of interest were disclosed in the following manner:- STATEMENT OF INTEREST ON SECURITIES FROM 1.04.2000 TO 31.03.2001 Particulars Interest on Govt. Securities Rs. Interest on other Trustee securities & debentures Rs. Summary of claim for tax deduction at source Amount Total interest income on securities 2,38,91,40,185 25,36,10,802 On Government Securities on other ..... X X X X Extracts X X X X X X X X Extracts X X X X
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