TMI Blog2017 (10) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... eration before the AO in the original assessment. However, on this ground the Tribunal entered into the merits and held that the same could not have formed the basis for making any additions. Without so elaborating, the Tribunal examined the question whether on the third ground, the Assessing Officer could have formed a belief that income chargeable to tax had escaped the assessment. The Tribunal ultimately held it against the Revenue. If we peruse the order in this respect more minutely, the issue pertains to offering certain interest income to tax. The assessee had given a loan to one GSIL but had not received interest on such loan for a long time, perhaps on the ground that there was no interest stipulation in the loan document. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment in accordance with the provision of section 147 of the Act read with clause(c) of Explanation2 below section 147 of the Act? The issue pertains to validity of reopening of an assessment in case of the respondent assessee for the assessment year 2003-2004. The Assessing Officer had recorded the following reasons for issuing the said notice : During the year, the assessee has claimed depreciation of ₹ 12,54,94,512/Under section 32(iia) of the IT Act, 1961, in the case of any new machinery of plant (other than ships and air crafts) which has been acquired and installed after the 31st day of March, 2002, by an assessee engaged in the business of manufacture or production of any article or thing, further the sum equal to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re the assessee themselves treated certain inventory as absolute and cost of it has been debited in the profit and loss account. This loss is due to the mistake on the part of the assessee of plan out properly the requirement of inventory and its timely use to production. 4. So, the action of the assessee to write off the inventory treating it is absolute is not justified. Omission to disallow the claim resulted into escaped income of ₹ 2,47,85,301/with consequent short levy of tax of ₹ 1,25,01,551/including interest leviable (at 37.25%) u/s 234B of the Act. 5. As per item no.9(i) in the Annexure Report (page31) as mentioned in the Annual for FY 200203, the assessee had given to Gujarat State Investment Limited (GSIL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice for reopening was based on three separate grounds as recorded in the reasons. In case of first two out of these three grounds, it was an admitted position before the Tribunal that the issues were examined by the Assessing Officer during the original scrutiny assessment who had made no additions. The Tribunal was therefore, of the opinion that any reopening on the basis of such grounds would amount to change of opinion and therefore, not permissible. The Revenue's contention that the Assessing Officer had not made specific mention of these issues in the assessment order also did not find favour of the Tribunal observing that the assessee would have no control over the manner in which the Assessing Officer would treat such issu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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