2016 (6) TMI 247

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..... ese appeals are clubbed together, heard together, disposed of by this common order for the sake of convenience. 2. 2. 1 The first common ground raised in these appeals is with regard to confirm the validity of reopening the assessment. 2.2 The second common ground is with regard to restrict the TDS claim of Rs. 1,97,193 instead of Rs. 5,70,943 (assessment year 2006-07) and of Rs. 7,13,670 instead of Rs. 15,87,185 (assessment year 2007-08). 3. First we take up the legal issue. The brief facts of the case are that the assessee is engaged in the business of trading in electrical, electronic and mechanical items. The assessee filed e-return on February 12, 2007 for the assessment year 2006-07 and on November 15, 2007, for the assessment year .....

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..... is ground of appeal of the Revenue is allowed. The learned Commissioner of Income-tax (Appeals) further observed that the assessee admitted during the course of appellate proceedings that the amount outstanding as royalty payable due to non-identification of copyright holders was treated as income and, hence, offered for taxation also. Hence, the learned Commissioner of Income-tax (Appeals) confirmed the action of the Assessing Officer. Against this, the assessee is in appeal before us. 4. We have heard both the parties and perused the material on record. In this case, assessment was reopened to consider the relevant TDS relating to the income offered by the assessee and income included in the TDS certificate, which includes share of other .....

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..... holders. Hence, on reassessment the Assessing Officer given credit only to the extent of income is offered by the assessee and other portion of TDS related to the other assessee stand withdrawn. Thus, only for the purpose of requirement of verification to find out any excess TDS benefit has been given to the assessee, assessment was reopened. There is nothing in the reasons to indicate that there is an escapement of income. To consider the variation in the TDS benefit to be given to the assessee, the assessment was reopened. The variation in the TDS benefit to be given does not necessarily lead to escapement of income. Mere need to verify the discrepancy does not bring matter within the scope of the cases in which reassessment proceedings c .....

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