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2016 (6) TMI 247 - ITAT CHENNAI

2016 (6) TMI 247 - ITAT CHENNAI - [2016] 48 ITR (Trib) 191 - Reopening of assessment - difference in income declared by the assessee and the income shown in the TDS certificate - Held that:- 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 asse .....

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can, at best, be the ground to verify and examine the matter further. Mere fact that matters need to be verified and examined further can never be a reason good enough to believe that income has escaped assessment and reopen the assessment proceedings, that too, the very initiation of proceedings but the facts of the instant case was devoid of merit and reassessment is bad in law. - Decided in favour of assessee - I. T. A. Nos. 1649 and 1650/Mds./2014 - Dated:- 13-4-2016 - Chandra Poojari (Accou .....

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eard 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 ₹ 1,97,193 instead of ₹ 5,70,943 (assessment year 2006-07) and of ₹ 7,13,670 instead of ₹ 15,87,185 (assessment year 2007-08). 3. First we take up the legal issue. The brief facts of the case are that t .....

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31,511 for the assessment under the head "other income" and similarly for the assessment year 2007- 08, billed royalty of ₹ 1,83,01,929 instead of ₹ 75,37,050. The Assessing Officer completed the assessment under section 143(3) of the Act restricting the TDS claim to ₹ 1,97,193 (assessment year 2006-07) and ₹ 7,13,670 (assessment year 2007-08). Aggrieved by the order of the learned Assessing Officer, the assessee was in appeal before the learned Commissioner of .....

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ll be given in the year in which the receipts against which the tax is deducted at source are assessed to tax. Accordingly, the assessee is entitled to claim credit of the TDS in the year in which the assessee's accounts for the income of ₹ 3.41 crores. This 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 .....

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share of other assessee also. The assessment was reopened by recording reasons as follows : "(i) On a perusal of the records, it is seen from the TDS certificates in relation to royalty, the assessee was in receipt of ₹ 2,61,08,623. However, the assessee has shown ₹ 75,37,500 only as receipt in the profit and loss account. It is also verified from the 3CD report that the assessee has not paid ₹ 1,85,71,573 to those, to whom the royalty is payable and as such the TDS has n .....

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, there is no addition to income declared in the original income determined by the Assessing Officer. The income of the assessee is the same as earlier assessed income either under section 143(1) or 143(3) of the Act. Thus, in the instant case, the assess ment was reopened on the ground there is a difference between the income declared by the assessee and the income shown in the TDS certificate. In other words, the income included in the TDS certificate not entirely belonged to the assessee, it .....

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