TMI Blog2013 (11) TMI 1628X X X X Extracts X X X X X X X X Extracts X X X X ..... s a Cooperative Society registered under Mutually Aided Cooperative Societies Act, 1995. Originally the assessment was completed under section 143(1) on 31.12.2005. Subsequently, a notice under section 148 was issued on 07.01.2008. The present was completed under section 143(3) read with section 147. As the assessee society is under liquidation, the notice was served on the Official Liquidator. During the course of assessment certain additions were made by A.O. such as assessee is not eligible to avail benefit u/s. 80P of the I.T. Act, Provision towards NPA debited to the P L a/c. disallowed ₹ 12,52,52,762/- and addition towards Contingent provision on standard assets not allowed ₹ 1,98,392/-. 3. Aggrieved, the assessee fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection on above issue before the A.O. he cannot be permitted to raise objection in that regard during the appeal proceedings. CIT(A) further pointed out that as stated by the AO, the return filed by the assessee originally in this case, was merely processed by the A.O. u/s.143(1) of the Act. No scrutiny assessment has been made earlier. Further, the A.O. can reopen the assessment in a case, so long as there exist reasons for the same. In the instant case, the A.O. has already briefly referred to the reasons for reopening the assessment in this case in the assessment order. Further, the CIT(A) held that from the reasons recorded by the A.O. lying in the assessment record, it is seen that he has clearly made out a case as to how income charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal. The 5th ground raised by the assessee is as follows : The learned CIT(A) ought to have held that the notice issued under section 148 by the A.O. is in accordance with law. 8. Before the Tribunal, the learned Counsel for the assessee Sri C.P. Ramaswamy submitted that the learned Commissioner of Income Tax ought not to have held that the notice issued under section 148 by the A.O. is in accordance with the law. The learned Counsel drew our attention to the reasons recorded by the A.O. vide his letter dated 24.11.2008 addressed to the assessee-bank, which reads as under : In computing the profit, the assessee debited an amount of ₹ 19,52,52,762/- to the profit and loss account towards NPA provision. In view of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raft Limited (2013) 354 ITR 536 (Del.) (H.C.), CIT vs. Usha International Limited (2012) 348 ITR 485 (Del.) (F.B.) (H.C.) and in the case of Delta Airlines Inc. vs. ITO (International Taxation) (2013) 33 Taxmann.co. 192 (Mum.). 10. The learned D.R. on the other hand, relied on the Judgment of the Hon ble Supreme Court in the case of ACIT vs. Rajesh Jhaveri Stock Brokers Pvt. Ltd. (2007) 291 ITR 500 (S.C.). 11. We have heard both the parties and perused the material available on record. We find that in the case of Ranjit Reddy vs. Dy.CIT, Hyderabad (2013) 144 ITD 361 the Coordinate Bench of this Tribunal has dwelled on the contention of the assessee that reopening of the assessment is not permissible as there is no tangible material. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Taxation) (2013) 33 taxmann.com 192 (Mum.) 13. Further, at page 485 it is stated as follows : When the matter reached to the Tribunal. the learned Judicial Member took e view that there was no fresh material to support the formation of the belief of the Assessing Officer that income chargeable to tax had escaped assessment and in the absence of any fresh tangible material, he came to the conclusion that it was not permissible for the Assessing Officer to reopen the assessment. The learned Accountant Member, however, took a different view relying on the decision of Hon'ble Supreme Court in the case of Rajesli Jhaveri Stock Brokers (P) Ltd. (supra) and the matter, therefore, was referred to a Third Member for resolving inter a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f India Ltd. (supra) wherein it was held that there should be tangible material to come to the conclusion that income had escaped assessment. Relying on the said decision, it was held by the Third Member that while resorting to section 147 even in a case where only an intimation had been issued u/s 143(1)(a), it is essential that the Assessing Officer should have before him tangible material justifying his reason to believe that income had escaped assessment. Since there was no such tangible material before the AO from which he could entertain the belief that income of the assessee chargeable to tax had escaped assessment, the Third Member held that reassessment proceedings initiated by the Assessing Officer were liable to be quashed on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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