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2015 (10) TMI 1710 - ITAT DELHI

2015 (10) TMI 1710 - ITAT DELHI - [2015] 43 ITR (Trib) 1 (ITAT [Del]) - Reopening of assessment - Held that:- We are of the view that reopening had been done merely on change of opinion in as much as that in the original assessment made u/s. 143(3) of the I.T. Act, the AO had apparently applied his mind and had raised queries with regard to the items which have been identified by the AO in this notice u/s. 147/148 of the Income Tax Act. We also find that AO has no fresh material to form his opin .....

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is invalid on the part of the AO and also on confirming the same on the part of the Ld. CIT(A). By these judgments the reopening of assessment beyond 4 years was also illegal. We also find considerable cogency in the contention raised by assessee’s counsel that the judgment of the Hon’ble Supreme Court in the case of Rajesh Jhaveri Stock Brokers (P) Ltd. (2007 (5) TMI 197 - SUPREME Court) which the AO as well as Ld. CIT(A) has relied upon is distinguishable to the facts of the present case, as i .....

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- Dated:- 3-9-2015 - SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER For The Department : Shri Sujit Kumar, Sr. DR For The Assessee : S h. S.R. Dinodia, CA ORDER PER H.S. SIDHU : JM The Appeal filed by the Revenue and the Cross Objection filed by the Assessee emanate out of the Order dated 09.11.2011 passed by the Ld. CIT(A)-XI, New Delhi relevant to assessment year 2003-04. 2. The following grounds have been raised in the Revenue s Appeal:- 1. Whether the Ld. CIT(A) erre .....

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d the following grounds in its Cross Objection:- 1. That the ClT(A) had grossly erred in low and on the facts and in the circumstances of the Appellate case in confirming the action of the A.O. in re-opening the assessment U/S 147/148 of the Income Tax Act. 2. That the ClT(A) has grossly erred in low in holding that the reopening by the AO u/s 147 was justified and that the A.O. had applied his mind. 3. That the ClT(A) ought to have held that there was no failure on the port of the Appellate in .....

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nd another and appellant craves leave to odd, amend, alter or change these grounds at the time of hearing. 4. The brief facts of the case are that a Notice u/s. 148 of the Income Tax Act, 1961 was issued to Shriram Pistons & Rings Ltd. on 10.3.2010 after recording reasons for issue of notice, as required by Section 148(2) of the Income Tax Act. The necessary approval as required by Section 151 of the I.T. Act was obtained before issue of the notice. The assessee filed a letter dated 29.7.201 .....

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was completed u/s 143(3) on 23.01.2006 at a total income of ₹ 27,42,30,520/-. Subsequently it has come to the notice that the assessee has the following expenses: 1) The assessee has claimed ₹ 92,26,993/- on account of scientific research and development as revenue in nature. This expense being of capital nature, the assessee ought to have treated it as capital expenditure. 2) The depreciation at the rate of 80% is claimed on Networking Project Expenses amounting to ₹ 1,23,66, .....

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apement of income has been clearly on account of failure on the part of the assessee to truly and fully disclose all the material fact necessary for assessment. Thus it is a fit case for initiation of proceedings u/s. 148 of the I.T. Act, 1961. 4.2 The case was finalized u/s. 147/143(3) of the Income Tax Act, 1961 at an income of ₹ 29,84,16,101/- and various additions were made against the assessee vide assessment order 1.11.2010. 5. Aggrieved with the same, assessee filed the Appeal befor .....

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he contention raised in the Cross Objection that Ld. CIT(A) has wrongly upholding the action of the AO regarding reopening of assessment u/s. 147/148 of the Income Tax Act, 1961. In support of its contention, the assessee filed the Synopsis which read as under:- 1. The assessee has filed Cross Objection against the order of the CIT(A) upholding the action of the AO regarding reopening of assessment u/s. 147/148 of the Income Tax Act, 1961. 2. It was submitted before the CIT(A) that reopening had .....

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se expenses in response to the query by the AO. 4. Similarly it had been pointed out by the assessee in the same letter that the AO has required to explain as to how the depreciation on pollution control equipment, is allowable @ 100%. This clearly shows that the AO has applied his mind-and has carried out a detailed scrutiny with regard to the depreciation chart on each item. It was further submitted that in any case depreciation chart is a part of Tax Audit Report and depreciation claimed as p .....

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td. 291 ITR 500 (SC) to uphold the action of the AO. It is respectfully submitted that judgement of Hon'ble Supreme Court was in different context of reopening when original assessment was not U/s 143(3) of the Income Tax Act. The facts of that judgement are distinguishable from facts of assessee in appeal. 6. Therefore the cross objections raised by the assessee needs to be allowed and it is prayed that it may be held that the reopening of the case which was originally assessed under scruti .....

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relevant records, especially the orders passed by the Revenue Authorities, Written Synopsis filed by the assessee. For the sake of convenience, first we would like to decide the legal issue challenging the reopening proceedings raised in the Cross Objection filed by the assessee. 9.1 We have gone through the facts and circumstances of the present case as well as the case laws cited by the Ld. Counsel of the assessee before the Revenue Authorities as well as before us. We are of the view that re .....

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