GST Helpdesk Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
What's New Case Laws Highlights Articles News Forum Short Notes Statutory TMI SMS More ...
Extracts
Home List
← Previous Next →

2016 (2) TMI 1095 - ITAT HYDERABAD

2016 (2) TMI 1095 - ITAT HYDERABAD - Tmi - Reopening of assessment - Held that:- What the AO is now seeking to tax the amount is on the basis of change of opinion and it is not permissible, as the AO has accepted the same and completed the assessment in terms of Section 143(3). Moreover, as already stated earlier, the reopening is after 4 years and there is no failure on the part of the assessee to make full disclosure. On the same material furnished by assessee, the reopening was done, which ca .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as an addition under the head income from other sources, even after accepting that an amount of ₹ 1,50,300/- pertains to a firm. Without even understanding whether the amount was an addition to the income returned or disallowance of the expenditure claimed, the Ld. CIT(A) confirms the ‘disallowance’ made by the AO. This shows not only the non-application of mind by the CIT(A), but also total ignorance of facts and law on the matter under consideration. In our opinion it is the CIT(A) who .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

g that there is no rationale in reopening the assessment after Assessing Officer (AO) duly enquired the issue on which reopening was undertaken. 2. Briefly stated, assessee is an individual and has admitted income of ₹ 5,62,047/- originally. The AO in the course of scrutiny assessment, specifically issued a Show Cause Notice to assessee about the deposits made in the bank account vide letter dt. 16-08-2007. Assessee vide reply filed on 22-10-2007 dt. 05-10-2007 has replied that his close f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ao. This letter was accompanied by an affidavit from Shri. K. Rajender Rao dt. 04-10-2007 and the statement of bank account and account copy of the firm in which the said ₹ 1,50,330/- was also reflected. AO after due enquiry and having satisfied passed an order u/s 143(3) on 16-06-2008. It was clearly stated in the order that the assessment was completed based on the information from CIT-CIB, Hyderabad and after verification of the material produced, the income returned was accepted. This .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Rajender Rao cannot be accepted. Even though AO acknowledges that the amount of ₹ 1,50,300/- pertains to M/s. Vital Agencies and the net amount stated to be pertaining to Mr. K. Rajender Rao was ₹ 14,27,000/-, he makes the addition of entire amount of ₹ 15,77,300/- in the re-assessment proceedings completed on 28-03-2013. Assessee challenged the order of the reassessment questioning that the reopening is on mere presumptions and without having any reason to believe and mere ch .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ecord submitted that the entire issue of deposits in the bank account was examined by the Dy. CIT in the course of assessment and having satisfied about the genuineness of the claims, accepted the same without making any addition. On the basis of the same submissions made before the Dy. CIT and affidavit placed on record, the assessment was reopened after four years. It is submitted that there is no failure on the part of assessee in making full and true disclosure and therefore reopening of ass .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

opies of the bank accounts of the firm to justify the transactions in the bank account. Having satisfied about the same, the AO completed the assessment without making any addition of the same. Since the assessment was reopened after the end of the four year period, it is imperative that AO should record a satisfaction that income chargeable to tax has escaped assessment for such assessment year by reasons of the failure on the part of assessee to disclose fully and truly all material facts nece .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing to the law on this issue. It is also a case within the purview of change of opinion . In CIT Vs. Usha International Ltd., [348 ITR 485], the Full Bench of Hon'ble Delhi High Court laid down the following propositions of law: (i) the expression "change of opinion" postulates formation of opinion and then a change thereof. In the context of section 147 of the Income-tax Act, 1961, it implies that the Assessing Officer should have formed an opinion at the first instance, i.e., 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

aised and answered by the assessee in original assessment proceedings but thereafter the Assessing Officer does not make any addition in the assessment order. In such situations, it should be accepted that the issue was examined but the Assessing Officer did not find any ground or reason to make addition or reject the stand of the assessee. He forms an opinion. The reassessment will be invalid because the Assessing Officer had formed an opinion in the original assessment, whether or not he had r .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nce the case of assessee is not covered by the first proviso to Section 147, re-assessment proceedings beyond the period of four years from the end of the relevant assessment year would be without jurisdiction and bad in law; 7. As seen from the assessment record, the question examined during the course of assessment proceedings indicate that AO has applied his mind to the deposits in the bank account and did enquire about the genuineness of the transactions. It is evident that the AO has examin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

fficer to initiate a proceedings under section 147 of the Act. The said submission is fallacious. An order of assessment can be passed either in terms of sub-section (1) of section 143 or sub-section (3) of section 143. When a regular order of assessment is passed in terms of the said sub-section (3) of section 143 a presumption can be raised that such an order has been passed on application of mind. It is well known that a presumption can also be raised to the effect that in terms of clause (e) .....

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'ble Supreme Court also. 8. Therefore, in our view, what the AO is now seeking to tax the amount is on the basis of change of opinion and it is not permissible, as the AO has accepted the same and completed the assessment in terms of Section 143(3). Moreover, as already stated earlier, the reopening is after 4 years and there is no failure on the part of the assessee to make full disclosure. On the same material furnished by assessee, the reopening was done, which cannot be sustained. 9. W .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Latest Notifications:

    Dated      Category

20-7-2017 Cus (NT)

18-7-2017 IT

18-7-2017 CE (NT)

18-7-2017 CE

18-7-2017 GST CESS Rate

15-7-2017 Kerala SGST

14-7-2017 Andhra Pradesh SGST

14-7-2017 Cus (NT)

14-7-2017 Cus

13-7-2017 Co. Law

13-7-2017 Co. Law

13-7-2017 ADD

13-7-2017 ADD

12-7-2017 Jammu & Kashmir SGST

12-7-2017 Gujarat SGST

12-7-2017 Gujarat SGST

12-7-2017 CGST Rate

12-7-2017 UTGST Rate

12-7-2017 UTGST Rate

12-7-2017 IGST Rate

More Notifications


Latest Circulars:

19-7-2017 Income Tax

18-7-2017 Customs

17-7-2017 Customs

14-7-2017 Income Tax

13-7-2017 Central Excise

13-7-2017 Customs

13-7-2017 Central Excise

13-7-2017 Customs

7-7-2017 Income Tax

7-7-2017 Goods and Services Tax

More Circulars



|| 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