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Haryana Agro Industries Corporation Limited Versus Commissioner of Income Tax, Panchkula Circle, Panchkula

2016 (5) TMI 423 - PUNJAB AND HARYANA HIGH COURT

Reopening of assessment - notice under section 148 of the Act on the basis of audit objection - Held that:- On appreciation of evidence on record and relevant case law on the point, it has been categorically recorded by the Tribunal that the audit party had raised an objection that certain expenses which pertained to earlier years had been claimed in the current assessment year. Reliance was placed on the judgment of the Apex Court in CIT vs. P.V.S.Beedies Pvt. Limited, (1997 (10) TMI 5 - SUPREM .....

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While concurring with the findings recorded by the CIT(A), it was concluded by the Tribunal reopening on the basis of audit objection is as per law in the given facts and circumstances of the case and the learned CIT(Appeals) has very aptly analyzed the validity of notice under section 148 of the Act and we do not find any infirmity in the findings recorded by the learned CIT(Appeals). - Decided against assessee - ITA No. 54 of 2016 (O&M) - Dated:- 26-4-2016 - MR. AJAY KUMAR MITTAL AND MRS. RAJ .....

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Tax Appellate Tribunal and learned Commissioner of Income tax (Appeals) Panchkula have not erred in law in not quashing the action of the Assessing Officer regarding reopening of assessment under the provisions of section 148 of the Income Tax Act, 1961 without appreciating the fact that at the time of reopening of assessment, the proceedings under section 154 were pending and no evidence of the service or the disposal of the proceedings initiated under section 154 were provided to the appellant .....

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e Hon'ble Income Tax Appellate Tribunal and learned Commissioner of Income Tax (Appeals), Panchkula, are not justified in not quashing the action of the Assessing Officer regarding reopening of assessment under the provisions of section 148 of the Income tax Act, 1961 which was reopened without complying with the provisions of section 147 of the Income Tax Act, 1961? D. Whether in the facts and circumstances of the case, the Hon'ble Income tax Appellate Tribunal and learned Commissioner .....

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s relevant for the decision of the controversy involved as narrated in the appeal may be noticed. The assessee is a company registered under the Companies Act, 1956. The return of income was e-filed by the assessee on 1.10.2008 declaring income of Rs. 2,70,18,880/- for the assessment year 2008-09 which was assessed under section 143(3) of the Act vide order dated 24.12.2010 at an income of Rs. 5,35,46,930/-. Later on, after recording reasons, a notice was issued under section 148 of the Act by t .....

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on 147 of the Act. The appellant filed a return of income in response to the notice under section 148 of the Act. The assessee also filed preliminary objections to the reopening of the assessment which were disposed of by the Assessing Officer vide interim order dated 15.1.2014. After rejecting the submissions made by the assessee, the Assessing Officer completed the assessment at an income of Rs. 4,79,66,220/- after making an addition of Rs. 17,55,845/- on account of prior period expenses vide .....

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sue raised in the present case was whether the notice under section 148 of the Act on the basis of audit objection was valid or not. On appreciation of evidence on record and relevant case law on the point, it has been categorically recorded by the Tribunal that the audit party had raised an objection that certain expenses which pertained to earlier years had been claimed in the current assessment year. Reliance was placed on the judgment of the Apex Court in CIT vs. P.V.S.Beedies Pvt. Limited, .....

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ection. While concurring with the findings recorded by the CIT(A), it was concluded by the Tribunal as under:- 8. From the reading of the above, it is quite clear that reopening made by the Assessing Officer on the basis of audit objection is as per law. The case of Locus T.V.S.Limited (supra) relied upon by the assessee is not applicable to the present case as in an earlier decision of the Hon'ble Supreme Court in the case of Indian & Eastern Newspaper Society (supra), it was held that .....

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Court, it infers that reopening on the basis of an audit objection can be done if some error is pointed out by the audit party, however, no reopening on the basis of audit objection can be done if the objection pertains to some interpretation of law. In this background, we now analyze the facts of the present case. It is noted that the audit party has raised an objection that certain expenses which pertained to earlier years have been claimed in the current assessment year, which are not so allo .....

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aptly analyzed the validity of notice under section 148 of the Act and we do not find any infirmity in the findings recorded by the learned CIT(Appeals). Therefore, we uphold the order of the learned CIT(Appeals) on this account. 9. On the merits of the case, the learned counsel for the assessee submitted that the assessee is paying service charges for the purchase of gunny bags to the Food & Supply Department of Government of Haryana, who buys the gunny bags for use of State of Haryana at .....

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