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TMI Blog2020 (12) TMI 435X X X X Extracts X X X X X X X X Extracts X X X X ..... x (Appeals) erred in upholding the re-opening of the assessment without properly considering the various decisions relied by the appellant. 2. The learned Commissioner of Income tax (Appeals) while relying on decision rendered in the case of Rinku Chakraborthy has ignored to apply subsequent decision of the Hon'ble High Court of Karnataka rendered in the case of Commissioner of Income Tax Vs. M/s. Hewlett-Packard Globalsoft Pvt. Ltd., and the decision of the Hon'ble Supreme Court. 3. The learned Commissioner of Income Tax (Appeals) erred in holding decision rendered in the case of Indian and Eastern News Papers Society Vs. Commissioner of Income Tax 119 ITR 996 was rendered prior to amendment to section 147 of the Act as such no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Assessing Officer made ad hoc addition of expenses of Rs. 6 lakhs and assessed the total income of Rs. 53,72,140/- and passed the order under Section 143(3) of the Act dt. 13.12.2010. Subsequently, the Assessing Officer has reopened the assessment by issue of notice/sec. 148 of the Act and reasons recorded letter dt. 27.11.2014. In the reassessment proceedings, the Assessing Officer observed that the assessee has debited commission charges, land development cost and hire charges without deduction of tax and the payments exceeds the specified amounts under Section 194C and 194H of the Act. The assessee explained that in respect of commission charges of Rs. 10,71,264/- the payments does not exceed the statutory limit. Further, the Char ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment order under Section 143(3) was passed on 13.10.2010 and therefore issue of reassessment notice is beyond the time limit under the Act. The Ld. Ar argued on the reasons recorded for issue of notice and explained that it is a mere change of opinion of the Assessing officer. The assessee has complied with the directions of Assessing officer in submitting the information on expenses supported with financial statements and tax audit report in the original assessment under Section 143(3) of the Act and prayed for allowing the appeal. Contra, the learned Departmental Representative supported the orders of CIT (Appeals) and submitted that in the original assessment, the Assessing Officer has overlooked the fact of non-deduction of TDS on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment is completed. Further on verification of Form No. 3CD, placed at page 41 of the Paper book in particular Clause 27(a), the Chartered Accountant has qualified that the assessee has not complied with the provisions of Chapter XVIIB in respect of deduction of tax at source. The Assessing Officer observed that the assessee has produced the bills and vouchers and accepted the assessee claim of expenditure. Since the expense are self-certified and does not contain full details, therefore AO made an ad hoc addition of Rs. 6 lakhs towards expenses and was accepted by the assessee. Further, on perusal of the reasons for reopening of the assessment in the letter dt. 27.11.2014, the assessing officer observed that since the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year: Provided further that nothing contained in the first proviso shall apply in a case where any income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment for any assessment year: Provided also that the Assessing Officer may assess or reassess such inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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