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TMI Blog2016 (11) TMI 1563X X X X Extracts X X X X X X X X Extracts X X X X ..... al plea challenging the jurisdiction of the Assessing Officer in issuing notice u/s 148 of the Act. It is the say of the Counsel that the issue challenging the jurisdiction of the Assessing Officer can be raised at this stage even if the same was not raised before the lower authorities. 3. We heard the ld. Counsel at length on this additional plea. The ld. DR simply relied upon the findings of the Assessing Officer. 4. After giving a thoughtful consideration to the additional plea taken by the ld. Counsel, we find that objection to jurisdiction, even if taken for the first time before the Tribunal, is permissible. Our view is fortified by the decision of the Hon'ble jurisdictional High Court of Gujarat given in the case of P.V. Doshi Vs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 21,94,16,8687/. The total income is determined at Rs. 21,99,31,210/- for the year 2007-08. The assessee company declared total income of Rs. 21,94,16,868/- for the year 2007-08. The total income includes Rs. 1,03,81,135/- as income from house property on account of leased out area of Iscon Mall, Rajkot, on which 30% standard deduction of Rs. 31,14.341/- was claimed under section 24 of the Act. Audit scrutiny of the records revealed that the construction / development of the Iscon Mall, Rajkot had been carried out by the assessee from the PY 2005-06 and completed in PY 2006-07. The construction cost of Rs. 4,37,68,672/- incurred during AY 2006-07 was shown WIP as on 31/3/2006. During the AY 2006- 07 and 2007-08 the assessee had sold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that Rule 8D if the Income-tax Rules would have retrospective operation. It was seen from assessment records of the assessee that assessee incurred interest expenditure to the extent of Rs. 5,03,32,591/- during the F.Y.2006- 07. The assessee earned dividend income to the tune of Rs. 21,336/- in the F.Y.06-07. However, proportionate interest paid during the year was not disallowed in view of the provisions cited above. Due to this income of the assessee was assessed less to the extent of Rs. 2,15,14,609/- with consequent short levy of tax and interest to the extent of Rs. 96,31,617/-. Therefore I have reason to believe that for the relevant assessment year, the above income chargeable to tax has escaped from assessment within the meanin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mutual Fund Dividend 21336 A/c copy Exhibit-14 In this regard no any expenditure claimed to earn exempt income" "14. Your goodself has called for to explain why the rental income should not be treated as income from House Property and give details of all the expenses relatable to lease rental ( Para 07 of Annexure to notice dated 08.10.09) In this regard, it is furnished that rent is received from brands for providing shops / showrooms in ISCON Mall, Rajkot, part of rent of is transferred to the investors, who ultimately buys shops / showrooms. The balance rent of shops / showrooms of Rs. 103,81,135/- is accounted as rent income and treated as income from house property, as called for by your goodself. A/c copy of rent income is f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... afraid, s. 147 would give arbitrary powers to the AO to reopen assessments on the basis of "mere change of opinion", which cannot be per se reason to reopen. We must also keep in mind the conceptual difference between power to review and power to reassess. The AO has no power to review; he has the power to reassess. But reassessment has to be based on fulfillment of certain pre-condition and if the concept of "change of opinion" is removed, as contended on behalf of the Department, then, in the garb of reopening the assessment, review would take place. One must treat the concept of "change of opinion" as an in-built test to check abuse of power by the AO. Hence, after 1st April, 1989, AO has power to reopen, provided there is "tangible mat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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