TMI Blog2018 (11) TMI 601X X X X Extracts X X X X X X X X Extracts X X X X ..... It is hereby quashed ; all consequential proceedings issued and conducted pursuant to the said reassessment notice are also hereby quashed. - W. P. (C) No. 11055 of 2017 . - - - Dated:- 10-8-2018 - S. Ravindra Bhat And A. K. Chawla JJ. For the Petitioner : Piyush Kaushik, Advocate For the Respondent : Asheesh Jain, Senior Standing Counsel JUDGMENT 1. The assessee in its writ petition challenges a notice issued under section 148 of the Income-tax Act, 1961 ( the Act ) for the assessment year 2010- 11 complaining that the original return (which had declared ₹ 33,64,00,315) was assessed under scrutiny under section 143(3) read with section 144C of the Act on April 30, 2014, with an addition of ₹ 31.13 crores. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment year 2010-11. 4. The following case law supports reopening of case under section 147/148 where material already available on records which institutes grounds for reasons to believe that income has escaped assessment. 1. CIT v. Rinku Chakraborthy [2011] 56 DTR 227 (Karn) ; and 2. Kalyanji Mavji and Co. v. CIT [1976] 102 ITR 287 (SC). Further, the following case law also support reopening of the case under section 147/148 on the basis of factual error pointed out by the audit party establishes the grounds for reasons to believe that income has escaped assessment : 1. CIT v. P. V. S. Beedies P. Ltd. [1999] 237 ITR 13 (SC) ; 2. Indian and Eastern Newspaper Society v. CIT [1979] 119 ITR 996 (SC) ; 3. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial outside. 4. Learned counsel for the Revenue argued that the reassessment notice in this case is valid and that, the amount claimed on account of forex gain, could not have been an allowable expenditure, being revenue in nature. It was further stated that an accounting standard AS 11 required disclosure of such gains, as a revenue item and not as one falling in the capital stream. 5. Carlton (supra) emphasises reliance by the Revenue on a subsequent audit report, cannot be considered as tangible material. The relevant extracts of that decision are as follows (page 298 of 318 ITR) : Ms. Prem Lata Bansal, learned counsel appearing for the Revenue has contended that audit party can on factual basis ask for reassessment and which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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