9911796707
TMI Blog2020 (12) TMI 1031X X X X Extracts X X X X X X X X Extracts X X X X ..... state Development and Project Management Consultancy Services. Assessee filed its return of income for Assessment Year 2006-07 on 06.12.2006 declaring loss of Rs. 4,70,809/-. The case was selected for scrutiny and initially the assessment was framed under section 143(3) vide order dated 30.12.2008 and the returned loss was accepted. Subsequently, the case was reopened under section 147 and notice under section 148 was issued and in response to which assessee vide letter dated 12.04.2013 submitted that the original return filed by it on 06.12.2006 be treated as return of income in response to notice under section 148 of the Act. Thereafter, the case was taken up for scrutiny and consequently the assessment was framed under section 143(3) rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edings u/s 147 parallelly when the proceedings u/s 154 were pending on the same issue and were not concluded. 3. The Learned Assessing officer has erred in Law and on the facts of the case in making an addition of Rs. 19,22,905/- was made on account of prior period expenditure/ reversal of consultancy fee. - 4. The Ld. CIT(A) has erred in observing as under and by upholding the additions made by Ld. AO in impugned order:- a) Appellant could not explain why the work was not completed even in earlier years, but the appellant showed the entire revenue as his income. b) Appellant failed to show that accounting standard 7 is applicable in his case. c) Appellant failed to discharge his burden if proof in this regard whereas holding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has been initiated is on account of change of opinion as the claim of prior period expenditure is evident from the fact that after examination of the facts, the claim was allowed by the AO in the assessment order framed under section 143(3) of the Act. He further submitted that during the course of original assessment proceedings, on a query of the AO with respect to the amount of Rs. 19,22,905/-, it was submitted by the assessee that it was reversal of consulting income as the project against which it was not received was not completed and the details of which were furnished before the AO and in support of which he pointed out to the copy of the letter that was placed before the AO and the copy of which is placed at page 83 of the paper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urisdiction to re-open an assessment. Section 147 of the Act, clothes the Assessing Officer with jurisdiction to reopen an assessment on satisfaction of the following: (a) The Assessing Officer must have reason to believe that (b) Income chargeable to tax has escaped the assessment and (c) In cases where the assessment sought to be reopened is beyond the period of four years from the end of the relevant assessment year, then an additional condition is to be satisfied viz: there must be failure on the part of the Assessee to fully and truly disclose all material facts necessary for assessment. Insofar the present case is concerned, the assessment year is 2006-07. The assessment year ends on 31.03.2007. In this case impugned notice under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been allowed in the original assessment proceedings after examination of the relevant details and facts cannot be amenable to provisions of Section 147/148 of the Act. 12. Considering the totality of the aforesaid facts, we are of the view that in the present case, notice for re-opening of the assessment u/s 147 of the Act is not as per the mandate of Sec.147 of the Act and therefore the re-opening is not permissible. We are therefore of the view that the notice issued for re-opening has to be set aside and the same deserves to be quashed. We therefore quash the impugned re-assessment proceedings for A.Y. 2006-07 and thus set aside the same. Since we have hereinabove set aside the assessment framed u/s 143(3) r.w.s 147 of the Act. the issu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
