9911796707
TMI Blog2016 (8) TMI 1482X X X X Extracts X X X X X X X X Extracts X X X X ..... s on merits. 2. The facts in brief, are that the assessee is a domestic company engaged as Share/Stock Broker, Merchant Banking / financial service provider who filed its Return of Income for Assessment Year 2006-07 during November, 2006 declaring total income at Rs. 6,12,47,996/- , the assessment of which was completed under section 143(3) at Rs. 6,29,41,275/- after making certain adjustments / disallowances vide Assessing Officer [AO] order dated 26.12.2008. The assessee preferred first appeal before Commissioner of Income Tax (Appeals)-14 which was partly allowed vide order dated 24.02.2010. 3. Subsequently a notice under Section 133(6) dated 06.04.2010 was issued to the assessee calling for certain information under the head 'Sundry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here appears to be a case of invoking Section 68 of the IT Act with regard to 'unexplained credit'. On facts and circumstances of the case, it is apparent that income to the tune of Rs. 17,73,18,533/- has escaped assessment. In view of the above, I have reasons to believe that the income of Rs. 17,73,18,533/- has escaped assessment in the hands of M/s J. M. Financial ASK securities Pvt. Ltd. Further escapement of income is because of failure on the part of the assessee to furnished true and fair particulars of income. In order to bring to tax above-mentioned income and any other which might have escaped assessment, found during the course of proceedings, notice under section 148 is issued.' 4. The assessee objected to the reopening ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the original assessment proceedings itself. The learned counsel for the department [DR], on the other hand, has justified the reopening and supported the reopening and contended that no opinion has been formed during the original assessment proceedings and therefore, there is no question of change of opinion in such a case and relied upon the judgment of Delhi High court in the case of Commissioner of Income TaxVI, New Delhi Vs. Usha International Ltd. (348 ITR 485). To counter, the learned AR has contended that opinion was certainly been formed during original assessment proceedings as specified questions has been asked with respect to 'Trade Payables' and 'Sundry Creditors' and full information to the extent called for from the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 147 provides that when an assessment is completed u/s 143 (3) of the Act then it can be reopened beyond four years from the end of the relevant assessment year, only upon satisfaction of either of following conditions: - (i) failure on the part of assessee to file the prescribed return; or (ii) failure of assessee to disclose full and truly all material facts necessary for the assessment The assessment is sought to be reopened by the AO mainly on the grounds that certain 'Trade Payables' and 'Sundry Creditors' have remained to be examined. We also find that specific queries were raised in this regard by AO during original assessment proceedings in questionnaire dated 10.09.2008 and the reply to the same was given by the assessee vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided there is "tangible material" to come to the conclusion that there is escapement of income from assessment. Reasons must have a live link with the formation of the belief". Further, the Hon'ble apex Court in the case of CIT vs. Foramer France (2003) 264 ITR 566 (SC) has clearly laid down the principle that where there is no failure on the part of the assessee to disclose material facts, the reassessment proceedings after the expiry of four years is not possible in view of the provisions of Sec. 147 of the Act. In the circumstances of the case and after appreciating the statutory provisions and judicial pronouncements, we conclude that reassessment proceedings are bad in law and the same are set aside. Accordingly, the appeal of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
