TMI Blog2019 (2) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... ith return of income of respective years. The tax audit reports for the respective years also contained verification statement of auditor certifying the compliance by the assessee with TDS provisions. Thus, when the scrutiny assessment was completed by the AO u/s 143(3) of the Act, the information provided by the assessee in the aforementioned schedule to the profit and loss account was perused, the legal position was noted and the assessment was completed and therefore, in our considered view the Tribunal rightly set aside the reopening of the assessment on the ground that there was no fresh material or evidence brought on record and what was done was solely based on change of opinion. - Decided against revenue. - Tax Case (Appeal) No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls are the validity of the reopening of the assessment. It would suffice to refer to the reasons for reopening of one of the assessment years and we take up the reasons assigned by the Assessing Officer for the assessment year 2002-2003, which is quoted herein below: The reasons recorded by your good self, pertain to the allegation that the assessee has failed to deduct tax on payments made to non-resident reinsurers. The deduction of tax on payments is a matter requiring examination during the course of scrutiny assessment under Section 143(3) of the Act, which in the case of assessee were framed on March 29, 2005 for the A.Y. 2002-03. The information regarding reinsurance ceded was disclosed in explicity in SChedule 1A, 1B and 1C to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emium ceded to the Non-residents during the year and the assessee has not provided sufficient evidence to prove that the TDS on the above payment of reinsurance premium has been duly made. Hence, the assessessee has not complied with the provisions of Section 195 of the Income Tax Act. Therefore, the above amount of reinsurance premium ceded outside India by the assessee has to be disallowed u/s. 40(a)(i) of the Income Tax Act. Thus, it is clear that the assessee has not disclosed its material facts fully and truly before the assessing officer. Further reliance also placed on the following decisions of various judicial forums. 1.Following decisions of the Honourable ITAT Chennai (a) Frontier Offshore Exploration India Limited vs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he details with regard to the reinsurance ceded to Indian Reinsurance Companies and Foreign Reinsurance Companies. However, the factual position appears to be otherwise because the information regarding reinsurance which was ceded by the assessee to both Indian and Foreign Reinsurance Companies were disclosed explicitly in Schedule 1A, 1B and 1C to the profit and loss account and information on foreign currency outgo during the respective years was disclosed in the director's report forming part of the financial statements which were filed along with return of income of respective years. Further the tax audit reports for the respective years also contained verification statement of auditor certifying the compliance by the assessee wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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