9911796707
TMI Blog2021 (6) TMI 499X X X X Extracts X X X X X X X X Extracts X X X X ..... t further contended these grounds that the initiation of proceedings u/s.147 was wrong as there was no omission or failure on the part of the appellant in disclosing fully and truly all material facts. It was also contended that the initiation of proceedings of Section 147 was erroneous as it involved resorting to looking at a new issue of disallowance u/s.10AA in contravention of the settled principles. Facts of the case, grounds of appeal, assessment order and submissions of the appellant were perused. It is seen that the assessment was reopened after taking approval as required. The reasons recorded for the reopening of the reassessment has taken into account the provisions of Section 10AA. The reasons includes taking into account the earlier assessment u/s.143(3) which was completed for A.Y.2008-09 on 24.11.2010. It is also seen from the assessment record that the reasons for reopening of the assessment was communicated to the appellant company vide letter dated 30.04.2015. Subsequently, the assessment i.e. 143(3) r.w.s. 147 was passed on 31.03.2016. On perusal of the assessment record for Asst. Year 2008-09, it is noted that the reopening of the assessment was due to RAP o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anite blocks. To meet the requirement of raw material, the company is transferring granite slabs from its captive mines to factory. While preparing the financial statements of mine as on 31.3.2007 the material marked for factory i.e. Rs. 39,54,058/- was shown in the Closing stock schedule as raw materials in mine. Since the factory is 100% EOU separate books of accounts were maintained from 1.4.2007. The raw material ear marked for factory of Rs. 39,54,058/- as on 31.3.2007 was transferred to factory during the year 2007*08. In addition to this another Quantity for Rs. 42,45,107/- was also transferred to Factory during the year 2007 - 08. The receipts of the matt-~rial was recorded as inter unit transfers / purchase in the books of accounts of factory during the year 2007 - 08. 4.2 The contention of the assessee is verified and found that it is purely presentation mistake as stated by the assessee Rs. 39,54,048/- was shown in the opening stock in the schedule of cost of goods sold of HO and Mines the same was credited as inter unit transfer to processing plant under sates schedule during the year 2007-08. So there is no excess debit of Rs. 39,54,048/- in the P&L account of HO and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n u/s.10A, the exemption mentioned in the assessment order under sec.10A is a typographical mistake. It should be under section 10AA. The assessee is 100% EOU located in SEZ and entitled for deduction u/s 10AA. Therefore, payment of MAT is not required. A copy of the letter dt.13.08.2015 furnished during scrutiny proceedings is enclosed herewith for ready reference. 2. With regard to opening and closing stock, the assessee submitted that Rs. 39,54,048/- was shown in the opening stock in the schedule of cost of goods sold of HO and Mines. the same was credited as inter unit transfer to processing plant under sales schedule during the year 2007-08. So there is no excess debit of Rs. 39,54,048/- in the P&L account of HO and Mine. Copies of explanation submitted by the assessee are enclosed for ready reference. 4. In view of the above, the objection at para 21 of LAR cited above is not maintainable and requires to be dropped for treating as Settled. A communication to this effect may be sent to this office at the earliest. Yours faithfully, XXXXXXXXXXX From the from the assessment record, it is seen reopening of the assessment was on a issue which was examined in the original ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orming an opinion that there has been an escapement of income. 'Reason to believe' will not include mere change of opinion. Respectfully following the ratio laid down by the Delhi High Court in the case of Kelvinator of India Ltd. [2002] 256 ITR 1/123 Taxman 433, the order of the Commissioner (Appeals) in treating the reassessment made by the Assessing Officer as null and void, deserved to be upheld. An audit opinion in regard to the application or interpretation of law cannot be treated as Information for reopening the assessment under section 147(b). ITO VS Object Connect India (P) Ltd (2014) 29 ITR(T) 518 (Hyd, Trib.) In view of the ratio laid down by the Delhi High Court in the case of Usha International Ltd. (supra) it is opined that the Commissioner (Appeals) has rightly quashed the reopening of assessment made by the Assessing Officer under section 147 observing that there was absolutely no fresh information provided or collected. Accordingly, the order of the Commissioner (Appeals) is upheld and the grounds raised by the Revenue on this issue is dismissed. The Hon'ble A.P High Court [Sri Kalyan Jyoti Sengupta CJ, & Sri K.C. Bhanu, J] vide order in I.T.T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efunds are outlined in the Board's Circular No. 14/19/56-11, dated 28-7-1960. [Internal Audit Manual, Vol.II, p.39J. Paragraph 2 of the circular repeats the provisions of section 16 of the Comptroller and Auditor-General's (duties, Powers and Conditions of Service) Act, 1971. And paragraph 3 warns that "the audit department should not in any way substitute itself for the revenue authorities in the performance of their statutory duties". Paragraph 4 declares: "Audit does not consider it any part of its duty to pass in review the judgment exercised or the decision taken in individual cases by officers entrusted with those duties, but it must be recognized that an examination of such cases may be an important factor in judging the effectiveness of assessment procedure .... It is, however, to forming a general judgment rather than to the detection of individual errors of assessment, etc., that the audit enquiries should be directed." The canons of judicial discipline which have been brought out by the Hon'ble Supreme Court In Jain Exports (P) Ltd., and Others vs. Union of India & Others [3 SCC 579J, Union of India & Others vs Kamiakshi Finance Corporation [55 ELT 433] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer was bound to follow the judgments in its letter and spirit. It was necessary for the judicial unity and discipline that all the authorities below the Tribunal must accept as binding the judgement of the Tribunal. The assessing officer being inferior officer vis-s-vis the Tribunal, was bound by the judgment of the Tribunal and the assessing officer should not have tried to distinguish the same on untenable grounds. In this behalf, it will not be out of" place to mention that in the hierarchical system of courts which exists in our country, ft is necessary for each lower tiers including the High Court, to accept loyally the decisions of the higher tiers. It is inevitable in hierarchical system of courts that there are decisions of the Supreme Appellate Tribunals which do not attract the unanimous approval of all members of the judiciary. But the judicial system only works if someone is allowed to have the last word, and that last word once spoken is loyally accepted. The better wisdom of the court below must yield to the higher wisdom of the court above as held by the Supreme Court In the matter of CCE v. Dunlop India Ltd. AIR 1985 SC 330. " Hence, Grounds Nos.1, 2 and 3 relati ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
