9911796707
TMI Blog2014 (12) TMI 1198X X X X Extracts X X X X X X X X Extracts X X X X ..... f assessment itself is not justified taking note of the Apex Court's decision in the case of CIT Vs. Kelvinator of India Limited? The Ld. CIT(A) further erred in holding that reopening of assessment done by the Assessing Officer is incorrect and unjustified. Accordingly, the reassessment order passed by the Assessing Officer is annulled.?" 2. In this case the assessee has filed return of income u/s 139(1) showing losses at Rs. 1,66,08,88,334/- on 28.10.2005. Such a return of income was subject to scrutiny and assessment was a completed vide order dated 03.12.2007 u/s 143(3) on total income of Rs. 9,25,43,74,150/- this year was further rectified u/s 154 at Rs. Nil. Thereafter the assessee's case has been reopened u/s 147 on the following r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be allowed for the reason mentioned above. Accordingly, the amount of Rs. 1,07,15,744/- claimed as a revenue expenditure is disallowed and added back to the total income of the assessee company." 4. Before the Ld.CIT(A), the assessee challenged the validity of the reopening on the ground that this change of opinion and no new material has came to the notice of the AO for entertaining "reason to believe" any income chargeable to tax has escape assessment. Reliance was placed on various decisions which have been corporate by the Ld.CIT(A) along with the submissions of the assessee from pages 2 to 5 of the appellate order. 5. The Ld.CIT(A) quash the proceedings u/s 147 after observing and holding as under:- "I have considered the A.O. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-assessment order passed by the A.O. is annulled." 6. Before us, the Ld. DR submitted that there was an omission on the part of the assessee to capitalize the expenditure which has resulted in to under assessment. Once it was noticed by the AO, reopening of the assessment has been initiated. Such a reopening was legally correct. The Ld.CIT(A) has not examined this issue on merits and therefore or Ld.CIT(A) cannot be sustained. 7. Before us, the learned counsel submitted that there is no new material on record coming to the knowledge of the AO for reopening the case u/s 147 from the perusal of the reasons recorded, it can be seen that the AO has noted from the accounts submitted during the course of the original assessment proceedings he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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