TMI Blog2021 (7) TMI 996X X X X Extracts X X X X X X X X Extracts X X X X ..... formed an opinion for reopening of an assessment. The findings of the AO reveals that during the original assessment proceedings, the assessee was asked to furnish the details and confirmations, in respect of the unsecured loans. The assessee, vide written submissions made on 12.10.2007, furnished a list containing the name of persons and amount outstanding against them in respect of the unsecured loans. However, the assessee has not furnished the loan confirmation, address and PAN of the persons from whom he claims to have received such loans - Assessing Officer formed an opinion that the onus is on the assessee to substantiate the loans by furnishing the above details to verify the genuinity and credit worthiness of the loan creditors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DER The writ on hand is filed to set aside the order dated 26.07.2012, disposing of the objections filed by the writ petitioner, with reference to the reopening of assessment proceedings for the Assessment Year 2005-06. The petitioner is a Company and an assessee on the file of the respondent. The petitioner filed its Return of Income on 13.10.2005. The Return was processed under Section 143 (1) of the Act. Scrutiny assessment was completed by the Assessing Officer and the assessment proceedings were completed under Section 144 of the Income Tax Act, 1968 (hereinafter referred to as, 'the Act'), on 18.12.2007. 2.The learned counsel for the petitioner made a submission that the petitioner submitted all the materials, informati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee did not furnish any details on the above bad debts and even during the scrutiny proceedings also, the assessee did not furnish any details. It is contended that all such details regarding the bad debts were furnished and considered. Thus, the reasons furnished cannot be construed as fresh materials and therefore, it is a case of change of opinion. The respondent has not considered the objections with reference to the documents and materials submitted by the petitioner. Contrarily, the very same materials which were adjudicated during the original assessment scrutiny were taken as a tangible materials for the purpose of reopening of the assessment and thus, the very reopening is change of opinion and not based on the tangible material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... believe that the income chargeable to tax escaped assessment. 7.In order to form an opinion, whether the initiation of 147 proceedings are based on tangible materials or change of opinion, it is relevant to consider the objections submitted by the writ petitioner as well as the findings given by the respondent while disposing of the objections in proceedings dated 26.07.2012. 8.The first objection raised by the assessee is regarding the jurisdiction of the Assessing Officer. The Assessing Officer, relying on the proviso of Section 147, made a finding that if the assessee has not disclosed fully and truly all the matter facts necessary for completion of assessment, the Assessing Officer shall re-assess the same. In the instant case, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uto, mahindra and mahindra etc., in respect of intercorporate loans the same are very well available for verification from the lending parties and their financial statements. Also confirmations elicited from their financial statements which are readily available for public inspection with registrar of companies. So the question of treating the 11.99 crores as unexplained credit u/s. 68 is not at all justified and the treating of the same as business income and setting off with brought forward losses owing to its status of unproved loans are correct and no rectification is require. 3.1 During the course of assessment proceedings the assessee was asked to furnish the details and confirmation in respect of unsecured loans. The assessee v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indings of the Assessing Officer reveals that during the original assessment proceedings, the assessee was asked to furnish the details and confirmations, in respect of the unsecured loans. The assessee, vide written submissions made on 12.10.2007, furnished a list containing the name of persons and amount outstanding against them in respect of the unsecured loans. However, the assessee has not furnished the loan confirmation, address and PAN of the persons from whom he claims to have received such loans. Thus, the Assessing Officer formed an opinion that the onus is on the assessee to substantiate the loans by furnishing the above details to verify the genuinity and credit worthiness of the loan creditors. Since the assessee has completely ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
