TMI Blog2016 (6) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... y’s objections. Hon’ble jurisdictional high court in RAAJRATNA case (2014 (8) TMI 598 - GUJARAT HIGH COURT) quashes a similar reopening instance by observing that the same does not amount to an Assessing Officer’s satisfaction as per provisions of the Act. The Revenue fails to distinguish its operation in the instant facts and law. We accordingly accept assessee’s first legal argument challenging validity of reopening. We hold the present case to be the one containing Assessing Officer’s failure in recording due independent satisfaction by reiterating that triggering point of a reopening is a judicious belief based on reasons formed in view of tangible material pointing out escapement of taxable income. We accordingly quash the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of facts and circumstances and submissions made before the lower authorities, the Id. CIT(A) ought to have held that the assessment order passed u/s. 147 was bad in law in view of the facts and all the decisions relied upon by the Appellant instead of the inapplicable decision relied upon by him. 1.4) Under the facts and circumstances of the case, the order of the Id. CIT(A) on this ground may kindly be set aside and the appeal of the Appellant kindly be allowed. 2) The Id. CIT(A) has further erred on facts and in law for the alternate ground raised without prejudice on merits for holding that out of the sum of ₹ 157.07 lakhs, an amount of ₹ 38.53 lakhs is to be assessed as business income and balance as income from o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 991/-. The same was processed. The Assessing Officer took up scrutiny. He completed a regular assessment on 30-12-2008 inter alia disallowing/adding fall in GP, bad debts, repairs and maintenance, unsecured loans, sacrifice fee paid to IDBI, increase in share capital, section 43B deduction and directors remuneration of ₹ 12,93,12,000/-, ₹ 3,11,000/- ₹ 17,90,595/-, ₹ 2,49,77,000/-, ₹ 1,01,04,000/-, ₹ 3,62,27,000/-, ₹ 4,80,25,630/- and ₹ 9,04,808/-; respectively. He accordingly arrived at net positive income of ₹ 25,16,52,030/- including the loss already returned. The same would be set off against brought forward losses of ₹ 24,76,59,042/- leaving behind a net figure of nil income o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0.12.2008 resulted into a total income of ₹ 24,76,59,042/-. P/L a/c was charged with an amount of ₹ 8,18,923/- being net of prior period expenses, instead of ₹ 19,99,107/-. The total underassessment worked out to ₹ 11,80,184/-. Further it was observed that the assessee was not entitled to obtain the set off of business loss against interest income taxable under the head as income from Other Sources as the P/L a/c of assessee was charged with amount of ₹ 157.07 lacs of interest and other. The assessee was not entitled to set off earlier year s business loss against income from other sources. In view of the above, I have reason to believe that the income has escaped assessment within the meaning of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us to Assessing Officer s order in reassessment framed on 11-11-2012 in question. Its last page contains remarks RAP requested to settle the objections . She cites case law of RAAJ RATNA METAL INDUSTRIES VS. ACIT SPECIAL CIVIL APPLICATION NO. 7140/2014 decided on 30-07- 2014 holding as under:- 8. Shri. Varun K. Patel, learned Advocate has appeared on behalf of the Respondent-Revenue. To satisfy ourselves, whether the reassessment proceedings have been initiated at the instance of the audit party and solely on the ground of audit objections, we called upon Shri Patel, learned Advocate appearing on behalf of the Respondent-Revenue, to provide the original file from the AO and Shri Patel has produced the relevant files from the office of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reassessment proceedings are hereby QUASHED and set aside. Further, it is made clear that we have expressed no opinion with respect to the grounds of objections raised and the impugned reassessment proceedings quashed and set aside solely on the aforesaid one ground only. Rule is made absolute. In the facts and circumstances of the case, there shall be no order as to costs. 9. The assessee s second argument is that it had placed on record all necessary details by way of replies to Assessing Officer s queries at pages nos. 26 and 30 of the paper book during the course of scrutiny. It refers to page 26 para 2 comprising of prior period expenditure details. Its case is that the Assessing Officer accepted the same and also included the im ..... X X X X Extracts X X X X X X X X Extracts X X X X
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