TMI Blog2016 (4) TMI 812X X X X Extracts X X X X X X X X Extracts X X X X ..... d that notice issued u/s. 148 and consequent assessment was not valid.- Decided in favour of assessee - ITA No. 1402/Mum/2011 - - - Dated:- 13-4-2016 - Joginder Singh, JM And Rajendra, AM For the Appellant : Ms Amrita Misra (DR) For the Respondent : Shri Nitesh Josh Ms Sonalee Godbole (AR) ORDER Per Rajendra, AM Challenging the order, dated 18. 10. 2010, of the CIT(A)-21, Mumbai, the assessee has filed the present appeal, raising five grounds of appeal. The first three grounds deal with re-opening of the assessment and the other two grounds are about addition made u/s. 14 A and computation of income u/s. 115JB of the Act respectively. Brief Facts: First, we would like to adjudicate the jurisdictional issue i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of ₹ 15, 66, 65, 724/- in the profit as disclosed in the Profit and Loss Account while computing the Book Profit for purposes of charging tax u/s 115JB resulted in escapement of income to that extent from charging to tax u/s 115JB of the IT. Act, 1961. I have reason to believe that the income of ₹ 15, 66, 65, 724/- which was chargeable to tax u/s. 115JB of the l. T. Act, 1961 has escaped assessment. Proceedings u/s 147 is being initiated. Completing the assessment u/s. 143(3)r. w. s. 147 of the Act, on 16. 11. 2009 the AO determined the income of the assessee at Rs. NIL under the normal provisions of the Act and at ₹ 18. 87 Crores u/s. 115JB of the Act. 3. Aggrieved by the order of the AO, the assessee p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly omitted to add the same in the book profit, that similarly he also did not consider the items of provisions of doubtful debts etc. while computing the income as per the MAT provisions, that the assessee had failed to demonstrate that during the original assessment proceedings he had examined the provisions to find out as to whether the provisions were on account of ascertained liability, that the AO could not have reopened the completed assessment on the issue of provision for doubtful debts, that assessment was validly re-opened on other issues, that there was no change of opinion. Finally, he held that the AO was justified in reopening the assessment. 4. Before us, the Authorised Representative(AR) stated that an objection was raise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore us. It is true that Section 147 of the Act, permits reopening of a completed assessment in a case where income liable to tax has escaped assessment. However, the proviso under the section carves out an exception and shifts the burden on the AO in a case where a period of four years has elapsed from the end of the relevant assessment year. The proviso stipulates three conditions. The AO is required to show from the record and the facts of the case that any one of the three conditions stands satisfied before he can assume jurisdiction to issue notice for reassessment. The conditions are non-filing of return and not responding to statutory notice. The third condition requires the AO to establish that there was any omission or failure on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld as under: Section 147 of the Income-tax Act, 1961, is the enabling provision which deals with escaped assessment under the heading Income escaping assessment . The section enunciates the ground on which the income which has escaped assessment can be assessed or reassessed. The power of the Assessing Officer to assess or reassess such income or other income chargeable to tax, which has escaped assessment is circumscribed by the preceding words of the section that is, if the Assessing Officer has reasons to believe that any income chargeable to tax has escaped assessment . The Assessing Officer's finding should categorically establish that the assessee has failed to disclose fully and truly the material facts which resulted i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
