TMI Blog2016 (11) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... on on some other ground i.e. non deduction of TDS on payment of freight. In our considered view, the ratio of the decision of Hon’ble Bombay High Court in the case of Jet Airways (I) Ltd.(2010 (4) TMI 431 - HIGH COURT OF BOMBAY ) is directly applicable to the instant case and the addition made by the Revenue cannot be sustained. - I.T.A. No.2408/Mum/2012 - - - Dated:- 8-9-2016 - SHRI MAHAVIR SINGH, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER For The Assessee Shri M. Subramanian For The Revenue : Shri A. Ramachandran ORDER PER RAMIT KOCHAR, Accountant Member This appeal, filed by the assessee company, being ITA No. 2408/Mum/2012, is directed against the appellate order dated 9th March, 2012 passed by learned Commissioner of Income Tax (Appeals)- 22, Mumbai (hereinafter called the CIT(A) ), for the assessment year 2005-06, the appellate proceedings before the learned CIT(A) arising from the assessment order dated 8th December, 2011 passed by the learned Assessing Officer (hereinafter called the AO ) u/s 143(3(ii) r.w.s. 147 of the Income Tax Act,1961 (Hereinafter called the Act ). 2. The grounds of appeal raised by the assessee company i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereas, the gross receipts as per TDS certificates amounted to ₹ 13,31,69,110/- on which TDS credit of ₹ 28,66,207/- is claimed. Therefore, I have reason to believe that income of ₹ 6,44,90,691 (133169110 68678419) has escaped assessment within the meaning of section 147 of the Act due to failure on the part of the assessee to disclose truly and fully all material facts. Notice u/s 148 of the Act, is therefore, issued. Notice u/s 148 of the Act was issued on 25th March, 2011 after obtaining the approval from the learned CIT-10, Mumbai which was duly served on the assessee on 1st April, 2011. The assessee vide letter dated 05.05.2011 requested to treat the return of income filed u/s 139 of the Act on 28.10.2005 as return filed in response to notice issued u/s 148 and requested to provide the reasons recorded for issuance of notice u/s 148 of the Act. The said reasons were communicated to the assessee vide letter dated 12 May, 2011. The A.O. noticed that the gross receipts as per the TDS certificates for which the credit was claimed by the assessee exceeded the total credits to the P L a/c and hence the income on which credit for tax deducted at source w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onciliation of TDS was submitted before the AO which although has not been discussed in original assessment order u/s 143(3) of the Act dated 24.12.2007 but the A.O. has duly applied his mind on the reconciliation of TDS on freight payments. The ld. CIT(A), on perusal of the assessment order u/s 143(3) of the Act dated 24.12.2007 observed that the A.O. has nowhere made any reference to the reconciliation of TDS on freight payments and hence it appears that no such query was raised by the A.O. during the original assessment proceedings u/s 143(3) of the Act. The assessee submitted that the said reconciliation was duly submitted and produced the copy of letter dated 18-12-2007 addressed to the AO which was submitted before the A.O. with respect to reconciliation of TDS on freight payments. However, the ld. CIT(A) observed that nothing as such has been mentioned in that letter nor there is a reference of any enclosure thereto, hence, the assessee has not substantiated its claim of deduction of TDS on freight payments. Thus, the ld. CIT(A) observed that the assessment order u/s 143(3) of the Act dated 24th December, 2007 was passed by the A.O. without application of mind on the issue o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tset, submitted that the original assessment order was passed on 24th December, 2007 u/s 143(3) of the Act while reopening has been done u/s 147/148 of the Act. Assessment order u/s 143(3) r.w.s 147 of the Act has been passed on 8th December, 2011. The reasons were duly recorded and notice u/s 148 of the Act was issued on 25th March, 2011. The reasons supplied to the assessee, which are as under:- In the instant case, return of income was filed on 28.10.2005 declaring total income of ₹ 66,54,560/-. Assessment was completed u/s 143(3) assessing total income at ₹ 66,54,560/- on 24.12.2007. Subsequently, it has been noticed that the gross receipts credited to the P L a/c amount to ₹ 6,86,78,419/- whereas, the gross receipts as per TDS certificates amounted to ₹ 13,31,69,110/- on which TDS credit of ₹ 28,66,207/- is claimed. Therefore, I have reason to believe that income of ₹ 6,44,90,691 (133169110 68678419) has escaped assessment within the meaning of section 147 of the Act due to failure on the part of the assessee to disclose truly and fully all material facts. Notice u/s 148 of the Act is, therefore, issued The ld. Counsel sub ..... X X X X Extracts X X X X X X X X Extracts X X X X
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