New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

Learning from reported judgment in case of Super Star Amitabh Bachachan second article in view of judgment of the Supreme Court on S.263 reversing relief allowed by Tribunal and High Court

Income Tax - Direct Tax Code - DTC - By: - CADEV KUMAR KOTHARI - Dated:- 30-5-2016 Last Replied Date:- 30-12-1899 - Relevant links and references: Commissioner of Income Tax, Mumbai Versus Amitabh Bachchan 2016 (5) TMI 493 -SUPREME COURT - Recent judgment of the honourable the Supreme Court of India on S.263 in case of Shri Amitabh Bachachan. CIT Versus SHRI AMITABH BACHCHAN 2012 (7) TMI 374 - BOMBAY HIGH COURT- judgment on S.147 for another year. In which reassessment proceeding was quashed as .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Amitabh Bachchan - 2008 (8) TMI 913 - BOMBAY HIGH COURT COMMISSIONER OF INCOME-TAX Versus MAX INDIA LTD. - 2007 (11) TMI 12 - Supreme Court of India Malabar Industrial Co. Ltd. Versus Commissioner of Income-Tax - 2000 (2) TMI 10 - SUPREME Court Commissioner of Income-Tax, West Bengal II Versus Electro House - 1971 (9) TMI 10 - SUPREME Court Gita Devi Aggarwal Versus Commissioner of Income-Tax, West Bengal And Others - 1969 (7) TMI 5 - SUPREME Court Relevant provisions Sections 69, 143(3), 147, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed for such mistakes due to carelessness of concerned persons, however, he will be liable to face all consequences. The matter can be so seriously viewed that Shri Bachhan, in spite of being one of top tax payers for many years can be penalized and prosecuted for concealment of income and for furnishing inaccurate particulars of income. As expressed in many earlier articles. reported judgments are a major source of information to learn and gain experience which the parties before the court had. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sixteen years old. As in case relating to S.147 (for Assessment year 2002-03) , discussed in earlier article, in this case also facts are similar that is assessee preferred claim for 30% of certain receipts as allowable expenditure in the revised ROI. However, such claim of expenditure was withdrawn when learned AO started enquiry. When learned AO wanted to invoke S.69C apprehending existence of unexplained income out of which expenses claimed in ROI were incurred, for spending such sums, the as .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the assessee/ his A/R for explaining his case. Learned CIT during hearing raised several other issues also which were not covered in the notice u/ S. 263 , however, opportunity of hearing was allowed on those issues ( as deemed by the Supreme Court). The CIT passed order u/s 263 setting aside assessment order passed by the AO as erroneous and prejudicial to the interest of revenue and directed the learned AO to make assessment de novo after providing opportunity of hearing to the assessee on se .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

evidences andexplanations so that learned AO can decide issue justifiably. In case AO do not decide issue justifiably and properly, the assessee would have opportunity before appellate authorities starting from CIT(A), to Tribunal than the High Court and then the Supreme Court. This will enable the revenue to examine case and assessee to make out his case on merits. The ultimate purpose of appeals and revision is to ascertain income properly and as per law. Therefore, when in an order u/s 263 , .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he AO had to pass order to save limitation. This is found from the recording in paragraph 14 of the judgment which is analysedas follows: As to orders of AO and CIT the Court observed that to determine the above question we have read and considered the order of the Assessing Officer dated 30th March, 2004; as well as the order of the learned C.I.T. dated 20th March, 2006. On various datesthe AO providedopportunities to produce the books of account and other relevant documents were afforded to th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

On such re-scrutiny it was revealed that the original assessment order on several heads was erroneous and had the potential of causing loss of revenue to the State. It is on the aforesaid basis that the necessary satisfaction that the assessment order dated 30th March, 2004 was erroneous and prejudicial to the interests of the revenue was recorded by the learned C.I.T. At each stage of the revisional proceeding the authorized representative of the assessee had appeared and had full opportunity t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

esent case. The order of the learned Tribunal insofar as the first issue i.e. the revisional order going beyond the show cause notice is concerned, therefore, cannot have our acceptance. The High Court having failed to fully deal with the matter in its cryptic order dated 7th August, 2008 we are of the view that the said orders are not tenable and are liable to be interfered with. Authors views on principal of natural justice: When CIT had offered various opportunities and the assessee and / or .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

his case, the assessee and / or his A/R had all documents based on which he could have contested matters before the AO. When assessee did not avail such opportunities and co-operate with the AO, the order made without adequate response by assessee on enquiry made by the AO was erroneous and the CIT had not violated principal of natural justice. Other substantial issue in revision proceeding, elaborately and seriously considered by the Supreme Court: As in case of reassessment for AY 2002-03, in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sessee in the re-revised return dated 31st March, 2003 had made a claim of additional expenses of 30% of the gross professional receipts (Rs.3.17 crores). The Assessing Officer required the assessee to file requisite details in this regard. The assessee responded by letter dated 13th February, 2004 stating as follows: With regard to the 30% estimated expenses claimed, we have to submit that these are the expenses which are spent for security purposes by employing certain Agencies, guards etc. fo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ld not be paid for want of income. Thereafter, by letter dated 13th March, 2004 the assessee informed the learned C.I.T. (sic. It should be AO) that the claim was made on a belief that the same is allowable but as it will not be feasible for the assessee to substantiate the same, the re-revised return of income may be taken to the withdrawn. The Assessing Officer issued a notice to show cause as to why the provisions of Section 69-C should not be invoked and the expenses claimed should not be tr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

took the view that notwithstanding the withdrawal of the claim by the assessee, in view of the earlier stand taken that the said expenses were incurred for security purposes of the assessee, the Assessing Officer ought to have proceeded with the matter as the assessee was following the cash system of accounting and the filing of the re-revised return, prima facie, indicated that the additional expenses claimed had been incurred. In this regard, the following findings/reasons recorded by the lear .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ised return and it was specially stated in letter dated 13.02.2004 that expenses were for security purposes and that payments have been made out of cash balances available etc. Under the circumstances, the Assessing Officer was expected to examine the matter further to arrive at a definite finding whether assessee incurred expenses or not and in case, actually incurred, then what were sources for incurring these expenses. Assessing Officer was satisfied on withdrawal of the claim and in my view, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

see, is a possible view and when two views are possible on an issue, exercise of revisional power under Section 263 would not be justified. Reliance in this regard has been placed on a judgment of this Court in Malabar Industrial Co. Ltd. vs. CIT 2000 (2) TMI 10 - SUPREME Court which has been approved in Commissioner of Income-tax vs. Max India Ltd. 2007 (11) TMI 12 - Supreme Court of India . From order and judgment of the Supreme Court on possibility of two views: There can be no doubt that so .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on in the present case in view of the reasons stated by the learned C.I.T. on the basis of which the said authority felt that the matter needed further investigation, a view with which we wholly agree. Making a claim which would prima facie disclose that the expenses in respect of which deduction has been claimed has been incurred and thereafter abandoning/withdrawing the same gives rise to the necessity of further enquiry in the interest of the Revenue. The notice issued under Section 69-C of t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

case of reassessment of the same assessee, reassessment was held invalid because there was no new tangible material. The AO has invoked S.69C and on consideration of explanation dropped proceeding S.69C . In that situation Tribunal and High Court held that reassessment is not permissible. It is not known whether any appeal has been filed by revenue. However, in view of author, any appeal, filed in such circumstances, by revenue is likely to be dismissed in view of settled legal position. However .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version