TMI Blog2017 (3) TMI 1604X X X X Extracts X X X X X X X X Extracts X X X X ..... 016/Assessment Year: 2005-06 - - - Dated:- 9-3-2017 - N.R.S. GANESAN, AND D.S. SUNDER SINGH For the Appellant by : Mr.R.Viswanathan, CA For the Respondent by : Mr.Supriyo Pal, JCIT 09-03-2017 ORDER PER D.S. SUNDER SINGH This is an appeal filed by the assessee against the Order dated 17.03.2016 of Commissioner of Income Tax (Appeals)-11, Chennai, in ITA No.646/2013-14/CIT(A)-11 for the AY 2005-06 and raised the following grounds: 1. The order dated 17.03.2016 of the Learned CIT(A)-11, Chennai in ITA No.ITA No.646/2013-14/CIT(A)-11 for the Assessment Year is contrary to facts, opposed to law and untenable. 2. The Learned Commissioner of Income Tax (Appeals) erred in rejecting the ground related to Jurisdiction on re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder u/s.143(3) r.w.s.147 on total income u/s.115JB at ₹ 6,26,78,000/-. As per Explanation-1 (iii) of Sec.115JB unabsorbed depreciation or the amount of brought forward loss whichever is less is allowed to be adjusted. In the re-assessment (third round) made u/s.143(3) on 28.03.2013, the AO made the adjustment relating to brought forward losses of earlier years and determined the total income u/s.115JB at ₹ 6,26,78,000/-. 3.0 Aggrieved by the order of the AO, the assesse went on appeal before the Ld.CIT(A) and challenged the validity of re-opening of assessment. The Ld.CIT(A) confirmed the re-opening of assessment and allowed the assessee s appeal partly. Against the order of the Ld.CIT(A), the assesse is on appeal befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted, during the Asst. Year 2005-06, it is seen from the records that the assessee, while computing the book profit u/s.115JB, the adjustments on account of Explanation (I)(iii,) to that section i.e. the amount of loss brought forward or unabsorbed depreciation whichever is less as per books of account, has claimed excess relief resulting in under assessment of income . 5.0 In the instant case, the assessment was related to the AY 2005-06 and the assessment was re-opened beyond four years. For re-opening the assessment beyond four years, there should be failure on the part of the assessee as per Sec.147 of IT Act and we extract the relevant provisions of IT Act as under: 30 [Income escaping assessment. 31 147 . If the 32 [A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as escaped assessment for any assessment year:] 37 [Provided 38 [also] that the Assessing Officer may assess or reassess such income, other than the income involving matters which are the subject matters of any appeal, reference or revision, which is chargeable to tax and has escaped assessment.] Explanation 1.-Production 39 before the Assessing Officer of account books or other evidence from which material evidence could with due diligence have been discovered by the Assessing Officer will not necessarily 39 amount to disclosure within the meaning of the foregoing proviso. Explanation 2.-For the purposes of this section, the following shall also be deemed to be cases where income chargeable to tax has escaped assessment, namely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the income or has claimed excessive loss, deduction, allowance or relief in the return;] 42 [(d) where a person is found to have any asset (including financial interest in any entity) located outside India.] 43 [Explanation 3.-For the purpose of assessment or reassessment 41 under this section, the Assessing Officer may assess or reassess the income in respect of any issue, which has escaped assessment, and such issue comes to his notice subsequently in the course of the proceedings under this section, notwithstanding that the reasons for such issue have not been included in the reasons recorded under sub-section (2) of section 148.] 44 [Explanation 4.-For the removal of doubts, it is hereby clarified that the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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