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TMI Blog2020 (12) TMI 1159X X X X Extracts X X X X X X X X Extracts X X X X ..... t Rs. 5,12,96,04,406/-. The case was selected for scrutiny and, thereafter, the income was assessed u/s 143(3) of the Income Tax Act, 1961 (hereinafter called 'the Act') at an income of Rs. 17,25,09,62,611/- vide order dated 30.12.2009. Thereafter, a notice u/s 148 of the Act was issued on 28.03.2013 to tax the income of Rs. 15,41,18,249/- in respect of house property tax which had allegedly escaped assessment. In response to notice u/s 148 of the Act, the assessee stated that the return filed by it earlier may be treated as returned filed in response to notice issued u/s 148/-. The assessee also asked for a copy of reasons which was duly supplied to the assessee. The reasons for reopening were as under: "During the year under considerat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he learned Commissioner of Income Tax Appeals [CIT (A)] is bad both in the eyes of law and on facts. 2. On the facts and circumstances of the case, the learned CIT (A) has erred in ignoring the contention of the appellant that reopening of the assessment is barred by limitation in view of the proviso to Section 147 of the Act. 3. (i) On the facts and circumstances of the case, the learned CIT (A) has erred, both on facts and in law, in confirming the order passed under Section 147 read with Section 148 of the Act, ignoring the fact that the same was bad in the eyes of law, as the conditions and procedures prescribed under the statute have not been satisfied and complied with. (ii) On the facts and circumstances of the case, the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the reason that there was no suppression of any material fact by the assessee during the course of original assessment proceedings and the information on the basis of which the reopening proceedings were initiated was already before the Assessing Officer in the original assessment proceedings. It was submitted that it was merely a change of opinion and, therefore, it was bad in law. The Ld. Authorized Representative relied on numerous judicial precedents in support of his contention that the reopening itself was invalid void ab initio. 3.1 On the merits of the case, the Ld. Authorized Representative (AR) submitted that during the year under consideration, the assessee, while computing the taxable income, had claimed and was allowed ded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount in the year under consideration. It was submitted that it did not affect any tax liability of the assessee as same amount had been disallowed in one year and had been allowed in the present assessment year for rectification purpose. The Ld. AR submitted that the AO reopened the case merely on the ground that in the computation of income, the assessee had claimed deduction of an amount of Rs. 15,41,18,249/- pertaining to property tax relating to rectification entry of Assessment Year 2005-06 without appreciating the fact that the assessee had not incurred any liability for property tax i.e. neither in Assessment Year 2005-06 and nor in Assessment Year 2006-07. It was submitted that the AO had misunderstood the fact that the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Year. However, in the Assessment Year under consideration i.e. Assessment Year 2006-07 it was realized by the auditor that a mistake had been committed and that this amount has been wrongly shown as a liability whereas no such liability existed for Assessment Year 2005-06. The Auditor rectified this mistake by writing back this amount in Assessment Year 2006-07. The Assessing Officer, not only initiated the reassessment proceedings, but also made an addition of this amount under the notion that assessee had claimed a deduction in this year although, this was not any deduction but only a rectification entry for writing back the impugned amount which pertained to Assessment Year 2005-06. Thus, apparently this rectification was tax neutral a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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