TMI Blog2017 (11) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of income. As evident that the Assessing Officer initiated reassessment proceedings on a mere change of opinion without there being any tangible material. Respectfully following the judgment in the case of Kelvinator (2010 (1) TMI 11 - SUPREME COURT OF INDIA ) and other numerous judgments on the point, we set aside the initiation of reassessment proceedings and the consequential order passed by the Assessing Officer. In view of our decision on the invalid initiation of reassessment proceedings, there is no need to dispose of the grounds raised by both the sides on merits. - Decided in favour of assessee. - ITA No.5957/Del/2014 Assessment Year : 2007-08 - - - Dated:- 25-10-2017 - <!--[if gte mso 9]> <![endif]- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anguage:EN-US;} <![endif]--> Shri R.S. Syal, Vice President And Shri Kuldip Singh, Judicial Member Assessee By : Shri Ved Jain, Advocate Shri Ashish Chadha, CA Department By : Ms Shefali Swaroop, CIT DR ORDER R.S. Syal, VP: These two cross appeals one by the assessee and the other by the Revenue arise out of the order passed by the CIT(A) on 27.08.2014 in relation to the A.Y. 2007-08. 2. Briefly stated, the facts of the case are that the Assessing Officer initiated reassessment proceedings. The assessee s objections against the initiation of reassessment were dismissed. Ex consequenti an addition of ₹ 1,97,40,000/- was made by means of disallowance of interest on customer deposit accounts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the time increase in liability at any point of time prior to payment cannot fall within the meaning of the word expenditure in section 37 (1). The requirement of expenditure is not met in this case. Similarly the requirement of money expended or laid out is also not satisfied and thus claim of deduction is not allowable u/s 37 (1) . 2. In the A. Y. 2006-07 the entire amount of these deposits were disallowed and added back to the income of the assessee as the same was treated on a nonexistent head of account held to be not payable by the assessee and were entirely taxed in that year. 3. In view of the above I have reason to believe that income of ₹ 19.74 Million (Rs.1,97,40,000/-) has escaped assessment within meaning of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are unable to comprehend the basis for initiation of the extant reassessment proceedings, being, the order passed for assessment year 2006-07. When the Assessing Officer passed the original order for the instant year u/s 143(3) of the Act, he was fully aware of the assessment order passed for the immediately preceding assessment year on the same date in which such disallowance of interest was made. Having accepted the deductibility of interest on deposits in the assessment order for the instant year, we fail to appreciate as to how the Assessing Officer could later on take cognizance of the assessment order for assessment year 2006-07, passed simultaneously with the assessment order for the current year, as a bedrock for the initiation of r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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