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TMI Blog2019 (4) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... he Assessing Officer u/s.143 r.w.s.147 of the Act and it is submitted that since no income had escaped assessment or under assessed Reopening u/s.147 is bad in Law and Void. 2. (a) Without prejudice, it is submitted by your Appellant that the Reopening has been done after expiry of four years and that your Appellant had not failed to disclosed in material or information necessary for Assessment u/s.l43(3)oftheAct. (b) Further it is submitted that there is no live link between Reasons for Reopening recorded and facts of the case and therefore also order u/s. 143(3) r.w.s 147 is bad in Law and Void. On Merits: (a) It is submitted by your Appellant that in Computing Total Income while passing order u/s. 143(3) the AO had given effect to order u/s. 154, payment u/s.40(a)(ia) u/s. 139(5) and the Final Income was correctly worked. (b) Your Appellant further submits that the Total Income was correctly worked out by the Assessing Officer in his order u/s. 143(3) and there was no error in giving set off of carried forward Business Loss/Depreciation and therefore the order of Reassessment be vacated. It is therefore submitted that relief claimed above be allowed and the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that assessee had failed to disclose fully and truly the material facts relevant for the original assessment year 2007-08 therefore the case of the assesse was reopened by issuing of notice u/s. 148 of the act on 28th Jan, 2014. The assessee filed revised return in response to notice u/s. 148 wherein income of Rs. 25,86,379/- was set off against brought forward business losses of Rs. 70,78,123/. Thereafter, the assessing officer has finalized the reassessment u/s 143(30 r.w.s. 147 of the act on 30.12.2014 and held that the business losses of Rs. 57,28,806/- (Rs. 70,78,123 - Rs. 13,49,317) not claimed in the original return of income was not allowed to be carried forward and set off in the subsequent assessment year. 5. Aggrieved assesse has filed appeal before the ld. CIT(A). The ld. CIT(A) has sustained the disallowance made by the assessing officer. Relevant part of decision of ld. CIT(A) is reproduced as under:- "6.3 The issue under dispute has its origins in A.Y. 2006-07, where the assessee had declared loss of Rs. 16,88,228/- in its Return of Income filed on 30.12.2006, where the assessee had declared business loss of Rs. 13,49,317/- and unabsorbed depreciation of Rs. 3,38 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 3,38,911/- for assessment year 2006-07. The assessee has also filed appeal before the ld. CIT(A) against the order of the assessing officer for assessment year 2005-06 and the ld. CIT has reduced the disallowance to Rs. 27,28,806/- against disallowance amount of Rs. 91,66,874/- u/s. 40(a)(ia) for assessment year 2005-06. An order u/s. 143(3) of the act for the assessment year 2006-07 was passed on 30-12-2008 determining total loss at Rs. 11,29,510/- after addition of Rs. 5,58,715/- . The assessing officer had allowed carry forward loss of Rs. 11,29,510/- to subsequent years. The assessee has filed appeal against addition of Rs. 5,58,715/- made by the assessing officer before the ld. CIT(A) for assessment year 2006-07 and he ld. CIT(A) has deleted the addition of Rs. 55,8715/- and the assessing officer in his appeal effect giving order has allowed the assessee to carry forward losses of Rs. 16,88,228/-. It is observed that the assessing officer had allowed the claim of carry forward losses as claimed in the original return of income however inadvertently the assessing officer has not considered the claim of carry forward of losses of the assessee according to the revised re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n under section 139 or in response to a notice issued under subsection (1) of section 142 or section 148 or to disclose fully and truly all material facts 1 necessary for his assessment, for that assessment year. Explanation 1.-Production before the Assessing Officer of account books or other evidence from which material evidence could with due diligence have been discovered by the Assessing Officer will not necessarily 1 amount to disclosure within the meaning of the foregoing proviso. Explanation 2.-For the purposes of this section, the following shall also be deemed to be cases where income chargeable to tax has escaped assessment, namely :- (a) where no return of income has been furnished by the assessee although his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax ; (b) where a return of income has been furnished by the assessee but no assessment has been made and it is noticed by the Assessing Officer that the assessee has understated the income or has claimed excessive loss, deduction, allowance or relief in the return ; ..... X X X X Extracts X X X X X X X X Extracts X X X X
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