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TMI Blog2017 (9) TMI 1223X X X X Extracts X X X X X X X X Extracts X X X X ..... nt under section 147 of the Act. 3. The learned CIT (A) erred in not appreciating that considering the facts and circumstances of the case and the law prevailing on the subject, the reassessment proceedings are not in accordance with the law and the provisions of the Act. The appellant therefore submits that the reassessment proceedings be held to be bad in law and struck down. 4. The learned CIT(A) erred in dismissing the appeal filed by the appellant as infructuous without considering the merits of the case. 5. The learned CIT(A) erred in not holding that considering the facts and circumstances of the case and the law prevailing on the subject, the order under section 143(3) read with section 147 is null and void and needs to be quashed. 6. The learned CIT(A) erred in not deciding on merit the addition of INR 11,22,74,613 on account of international transactions entered into by the Appellant with its AEs in respect of the medical imaging diagnostic segment (transfer pricing adjustment). 7. Each one of the above grounds of appeal is without prejudice to the other. 8. The appellant reserves the right to amend, alter or add to the grounds of appeal." The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed objections/submissions against reasons for reopening on 04-01-2013. The Assessing Officer decided the objections of the assessee on 12-03-2013 and immediately on the next day i.e. 13-03-2013 issued show cause notice in respect of Transfer Pricing adjustment. The assessee could barely file reply to show cause notice on 19-03-2013, immediately thereafter, the Assessing Officer passed order u/s. 143(3) r.w.s. 147 of the Act, on 25-03-2013. The sequence of events clearly indicate that the Assessing Officer passed assessment order in reassessment proceedings in violation of the directions of Hon'ble Jurisdictional High Court in the case of Asian Paints Ltd. Vs. Deputy Commissioner of Income Tax reported as 296 ITR 90. The Hon'ble High Court has held that in reassessment proceedings where the Assessing Officer does not accept the objections filed by the assessee, he shall not proceed further in the matter within a period of four weeks from the date of receipt of service of the order on objections, on the assessee. The Hon'ble High Court has granted period of four weeks to the assessee to exhaust the legal remedies available to him against the order of Assessing Officer rejecting ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent fresh material to initiate reassessment proceedings, therefore, there is no infirmity either at the time of recording satisfaction or the subsequent proceedings. The ld. DR prayed for dismissing the appeal of assessee. 5. We have heard the submissions made by representatives of rival sides and have perused the orders of authorities below. We have also considered various decisions on which the ld. AR of assessee has placed reliance. 6. In ground Nos. 1 to 5 raised in the grounds of appeal and the additional ground of appeal, the assessee has assailed reopening of assessment u/s. 147 of the Act. The Assessing Officer issued notice u/s. 148 of the Act on 07-02-2012 after recording of satisfaction on 19-01-2012. The copy of satisfaction for initiating reopening of assessment was provided to the assessee vide communication dated 20-12-2012. Before proceeding further it would be necessary to first examine the reasons for initiating reassessment proceedings. The relevant extract of the satisfaction note is reproduced here-in-below : 6. In ground Nos. 1 to 5 raised in the grounds of appeal and the additional ground of appeal, the assessee has assailed reopening of assessment u/s. 147 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1, Thane" A perusal of satisfaction note shows that the Assessing Officer has issued notice u/s. 148 on the directions of JCIT, Range-1, Thane and CIT-I, Thane. A perusal of satisfaction note shows that the Assessing Officer has issued notice u/s. 148 on the directions of JCIT, Range-1, Thane and CIT-I, Thane. 7. The full bench of Hon'ble Delhi High Court in the case of Commissioner of Income Tax Vs. Kelvinator of India Ltd. reported as 256 ITR 1has held that one of the pre conditions for reopening is that the Assessing Officer must have 'reason to believe' that income chargeable to tax has escaped assessment. The relevant extract of the observations of Hon'ble High Court in this regard are as under : "7. From a bare perusal of the provisions contained in s. 147 of the said Act, as it stood up to 31st March, 1989, it is evident that to confer jurisdiction under s. 147(a) of the Act two conditions were required to be satisfied viz., (i) the AO must have reason to believe that income chargeable to tax has escaped assessment; and (2) he must also have a reason to believe that such escapement occurred by reason of either (a) omission or failure on the part of the assessee to make a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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