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DCIT, Circle-8, Kolkata Versus M/s. Usha Martin Finance Ltd

Reopening of assessment - lease equalisation charges, provision for nonperforming assets and provision for diminution in the value of investments - CIT(A) quashed reopening order - Held that: - On the item of lease equalisation charges the Tribunal has decided the matter in favour of the assessee in assessment year 1997-98 in assessee’s own case.

Provision for nonperforming assets and provision for diminution in the value of investments - Held that:- The reopening is on the basis of .....

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In the present case the notice u/s. 148 of the Act was issued prior to the amendment and once this is the position, the issue is squarely covered in favour of assessee. The reassessment u/s. 147 of the Act has rightly been quashed by CIT(A) and we confirm the same. - Decided against revenue. - ITA No. 395/Kol/2012 - Dated:- 13-5-2015 - Mahavir Singh, JM And B P Jain, AM,JJ. For the Appellant : Shri Nilay Baron Som, JCIT For the Respondent : Shri Amit Patni, AR & Shri Nimish Kumar, .....

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is, Revenue has raised following ground No.1:- "1. That on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in holding that the reassessment proceedings are not in accordance with the provision of law whereas it was clearly as per law and the AO has followed and observed all the directions given by appellate authorities." 3. Briefly stated facts are that assessee is a domestic company engaged in the business of providing financial services such as hire purchase .....

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er of appellate state in first round, Department preferred appeal before Tribunal and Tribunal dismissed the appeal of Revenue but allowed the Cross Objection filed by assessee with a direction to provide reasons and pass a speaking order on the objections in respect of issuance of notice u/s 148 r.w.s. 147 of the Act in view of the decision of Hon'ble Supreme Court in the case of G.K.N. Driveshafts (India) Ltd. v. ITO (2003) 259 ITR 19, 20 (SC). In terms of above direction of the Tribunal, .....

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n 115JA of the Act in respect of provision for non performing assets (NPA) and provision for diminution in the value of investment. However, the AO has not accepted the contention of the assessee and assessee taken the matter in appeal before CIT(A) who quashed the reassessment proceedings and the relevant pare of the findings of CIT(A) reads as under:- "Now, the first issue to be decided in this appeal is the legality of issue of notice under section 148 of the IT Act. In the first place, .....

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ated on any other issue than those covered by the sec. 154 proceedings, and those issued stood examined by the appellate authorities as well. Secondly, it is apparently clear from the facts of the case as brought out by the Assessing Officer that though the assessment was reopened before the amendment in sec. 115JA of the Act with retrospective effect from 1.4.2001. There, the facts of the case are squarely covered by the decision of IOT Infrastructure & Energy Services Ltd. vs. Assistant Co .....

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TR (SC) 485; (210) 320 ITR 561 (SC), the ratio laid down by the Hon'ble Supreme Court is that "reopening of the assessment is not founded on tangible material and that the AO has acted outside the fold of his jurisdiction." In CIT vs. Sun Engineering Works (P) Ltd., TC 51R 314, the Hon'ble Supreme Court has held that where an appeal has been filed against intimation, matter concluded therein cannot be re-examined in re-assessment proceedings. Therefore, following the judgments .....

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r nonperforming assets and provision for diminution in the value of investments. The assessee contended that on the item of lease equalisation charges the Tribunal has decided the matter in favour of the assessee in assessment year 1997-98 in ITA No. 1291/K/2001 vide dated 16.05.2008 in assessee s own case. Secondly, the reopening is on the basis of retrospective amendment made by Finance No. 2 Act, 2009 in section 115JA of the Act in respect to proposed additions on account of provisions for no .....

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