TMI Blog2019 (11) TMI 548X X X X Extracts X X X X X X X X Extracts X X X X ..... s clearly apply to the facts and circumstances of the case. There was, thus, no justification for the A.O. to initiate re-assessment proceedings against the assessee. In this view of the matter, reopening of the assessment is invalid and bad in law. Accordingly, set aside the Orders of the authorities below and quash the reopening of the assessment. Resultantly, appeal of Assessee is allowed. In this view of the matter, there is no need to decide the addition under section 14A which is left with academic discussion only. - ITA.No.7331/Del./2018 - - - Dated:- 11-11-2019 - Shri Bhavnesh Saini, Judicial Member For the Assessee : Shri Anoop Sharma, And Shri Sahil Sharma, Advocates For the Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T.L. Infra Ltd. The source of investment in share trading was stated to be short term loan from corporate companies amounting to ₹ 3,70,00,000/-. M/s. Vibhut Builders Engg. Pvt. Ltd. has not filed its return of income for the assessment year 2009-10. After perusal of the above mentioned information facts and since the returned was not filed by the assessee, I have reason to believe that an income of at least ₹ 35,00,000/- for A.Y. 2009-10 has escaped from assessment. Approval for initiating proceedings u/s 147 r.w. 149(1)(b) r.w.s. 151 of the Income Tax is requested from Pr.CIT-9, New Delhi for determination of income of the assessee in AY 2009-10. Sd/-Ram Niwas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing have been done has disappeared or incorrect reasons have recorded. Learned Counsel for the Assessee further stated that A.O. in the reasons recorded has merely mentioned that assessee has undertaken all market transactions of 7000 shares of Era Infra Engineering Ltd., valued at ₹ 35 lakhs. Further, the A.O. did not make any such addition in the re-assessment order for which reopening have been done. The A.O. in the assessment order has made disallowance under section 14A only. Learned Counsel for the Assessee relied upon Judgment of Hon ble Bombay High Court in the case of CIT-5, Mumbai vs., Jet Airways (I) Ltd., [2011] 331 ITR 236 (Bom.) in which it was held as under : Section 147 of the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : The assessee-company was engaged in the business of manufacture and trading of pharmaceuticals products. The Assessing Officer accepted returned income of the assessee but initiated reassessment proceedings under section 147 of the Income-tax Act, 1961, in respect of club fees, gifts presents and provision for leave encashment. While completing the reassessment, however, he did not make additions on account of these items but instead reduced the deductions under sections 80HH and 80-1. The Commissioner (Appeals) held that in the original assessment the powers of the Assessing Officer were limited to the extent of prima facie adjustment only. On the merits of the additions, the Commissioner (Appeals) followed his order o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the Assessing Officer during the course of proceedings of assessment or reassessment of escaped income, and which he intends to take into account, he would be required to issue afresh notice under section 148. The Assessing Officer was satisfied with the justifications given by the assessee regarding the items of club fees, gifts and presents and provision for leave encashment, but during the assessment proceedings, he found the deduction under sections 80HH and 80-I as claimed by the assessee to be not admissible. He consequently proceeded to make deductions under sections 80HH and 80-I and accordingly reduced the claim on these accounts. The very basis of initiation of proceedings for which reasons to believe were recorded was inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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