TMI Blog2019 (2) TMI 1580X X X X Extracts X X X X X X X X Extracts X X X X ..... 17, cannot be sustained. It is hereby quashed; all consequential proceedings issued and conducted pursuant to the said re-assessment notice are also hereby quashed. - Decided in favour of assessee. - W.P.(C) 11055/2017 - - - Dated:- 10-8-2018 - Mr. Justice S. Ravindra Bhat And Mr. Justice A. K. Chawla For the Petitioner : Mr. Piyush Kaushik, Adv. ORDER The assessee in its writ petition challenges a notice issued under Section 148 of the Income Tax Act ( the Act‟ ) for 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 30.04.2014, with an addition of ₹ 31.13 crores. The im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case u/s 147/148 where material already available on records which institutes grounds for reasons to believe that income has escaped assessment. 1. CIT Anr. Vs. Rinku Chakraborthy (Kar) 56 DTR 227 2. Kalyanji Mavji Co. Vs. CIT (SC) 102 ITR 287 Further, the following case laws also supports reopening of case u/s 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 Vs.P.V.S. Beedies P. Ltd. (SC) 237 ITR 13 2. Indian Eastern Newspaper Society Vs. CIT (119 ITR 996) 3. CIT Vs. First Leasing Co. Of India Ltd. (Kad.) 241 ITR 248 Hence, I have reason to believe that the assessee company has wrongly clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 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 : 8. Ms. Prem Lata Bansal, learned counsel appearing for the Revenue has contended that audit party can on factual basis ask for reassessment and which has, therefore, been done in the present case. It is, however, admitted by her that a mere change of opinion does not permit action und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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