TMI Blog2018 (2) TMI 441X X X X Extracts X X X X X X X X Extracts X X X X ..... their entirety. Under the circumstances, the assumption of jurisdiction on the part of the Assessing Officer under section 147 of the Act after a period of four years from the end of the relevant assessment year is without any authority of law. Assessment is sought to be reopened on the ground that various expenses were paid, out of which, payment was made in cash to eight persons which was required to be disallowed under section 40A(3) of the Act. A perusal of the documents annexed along with the petition reveals that at the time of the scrutiny assessment proceedings under section 143(3) of the Act, the Assessing Officer had called for details of the expenses incurred by the petitioner, who had duly submitted the same. The statements ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as per drawing and specifications supplied to it. The petitioner filed its return of income for assessment year 2011-12 on 30.4.2012 declaring total income of ₹ 3,29,63,510/-. The Assessing Officer called for and examined the necessary evidence and completed regular assessment under section 143(3) of the Act on 4.3.2014 on a total income of ₹ 3,34,19,536/-. Subsequently, the respondent has issued the impugned notice dated 25.3.2017 under section 148 of the Act, proposing to reassess the total income of the petitioner for assessment year 2011-12. In response thereto, the petitioner submitted a letter dated 10.4.2017 stating that the original return of income filed on 30.4.2012 be treated as return filed in response to the notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hange of opinion and hence, also the assumption of jurisdiction on the part of the Assessing Officer lacks validity. The attention of the court was invited to the notice dated 7.1.2014 issued by the Assessing Officer under section 142(1) of the Act, to point out that the Assessing Officer had called for details of production incentive expenses, and that in response thereto, the petitioner, vide a letter dated 5.2.2014 had given the details of the expenses. It was pointed out that in the details all the cash payments made by the petitioner had been clearly set out. It was submitted that the Assessing Officer, after considering the same, has not thought it fit to make any addition on this ground and hence, the reopening of assessment is based ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment of income of ₹ 5,69,208/- with short levy of tax of ₹ 1,88,196/- + ₹ 63,318/- interest. I have therefore reason to believe that the above income of ₹ 5,69,208/-, chargeable to tax has escaped from assessment and this is a fit case for issue of notice u/s.148. 8. It is an admitted position that in the present case, the assessment is sought to be reopened beyond a period of four years from the end of the relevant assessment year, and hence, the first proviso to section 147 of the Act would be clearly attracted. Therefore, either of the following two conditions is required to be satisfied for the purpose of reopening the assessment. Firstly, that income chargeable to tax has escaped assessment on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 143(3) of the Act, the Assessing Officer had called for details of the expenses incurred by the petitioner, who had duly submitted the same. The statements submitted by the petitioner clearly revealed the payments made in cash to different parties in detail. Evidently, therefore, at the time of the regular assessment, the Assessing Officer had gone into the issue and had not thought it fit to make any disallowance under section 40A(3) of the Act. Therefore, the reopening is based upon a mere change of opinion, which also renders the impugned notice unsustainable. 10. For the foregoing reasons on both counts as discussed hereinabove, the impugned notice cannot be sustained. The petition, therefore, succeeds and is, accordingly, allowed. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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