TMI Blog2021 (12) TMI 870X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant Assessment Year. In the present case, the assessee admittedly stated that Tax Consultant committed error by not mentioning loan fund in the original return of income. The Assessing Officer in the original assessment dated 12.02.2016 has never doubted the claim of interest and there is no mention of actual disclosure of claim of interest at any stage of its Assessment Order. Thus, the Assessing Officer in assessment under Section 143(3) of the Act has not noticed that there is escapement of certain issues in the Assessment Order/assessment proceedings. Thus, explanation of section 147, to be specific Explanation-3, will come into picture and it will not amount to change of opinion. Thus, ground no. 1 of assessee's appeal is dismissed. Merits of the case Assessee has explained before the Assessing Officer that the loan fund was mentioned in the return of income filed in response to notice under Section 148 of the Act and thus the assessee has made valid claim of interest expenses on borrowed fund. The same should have been allowed by the Assessing Officer. Hence, the appeal of the assessee is partly allowed. - ITA No. 2189/Ahd/2018 - - - Dated:- 7-12-2021 - Wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excess deduction of ₹ 3,79,128/- resulted into under-assessment to that extent. During the course of reassessment proceedings, the Assessing Officer also observed that the assessee's omission to bring to the attention of the Assessing Officer the full and correct particulars of the items in the books of account amounts to non-disclosure of material information within the meaning of Section 147 of the Act. Therefore, the Assessing Officer had the reason to believe and was satisfied that it is a fit case for reopening of the assessment. Accordingly, the reasons dated 09.11.2017 was recorded with the prior approval of the Range Additional Commissioner of Income Tax and the case was reopened by issuing notice under section 148 of the Act dated 22.08.2017. The reasons for reopening the assessment under Section 147 of the Act dated 09.11.2017 is reproduced herein below:- No. ITO-Wd-3/AND/Reason/l 47/2016-17 Date: 09/11/2017 To, Shri Bharat Dhirajlal Shah HIMDIP, Nr. Radhakrishnan Statue, Opp. Brahmkumari, Sardar Gunj, Anand. Sir, Sub: Reason for reopening the assessment u/s. 147 of the I.T. Act- Please refer to your letter date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said reply and made addition of ₹ 3,79,128/- thereby disallowing the interest expenses. 5. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 6. The Ld. AR submitted that the assessee is challenging validity of reassessment proceedings undertaken by the Assisting Officer on the basis of change of opinion and thus re-opening is not tenable under law. The Ld. AR submitted that the initiation of reassessment proceedings on the ground that there is interest income and interest expenses which was shown Nil in the column of loan funds, it was only by an inadvertent oversight/error committed by the Tax Consultant. The Ld. AR submitted that the loan funds were reflected in Balance Sheet, Ledger Account and, therefore, this reopening is only change of opinion. The Ld. AR relied upon the decisions of Hon'ble Gujarat High Court in the case of Adani Enterprises, 101 Taxmann.com 91, Shanti Enterprises, 76 Taxmann.com 184, Krupesh Ghanshyambhai Thakkar, 77 Taxmann.com 293 as well as relied upon the decision of the Hon'ble Apex Court in the case of Zee Media Corporation Limited. The Ld. AR su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been done on the claim of interest expenses. The assessee in the original return of income has not mentioned the amount regarding loan funds. The Ld. AR pointed out page no.80 dated 26.06.2015 and there is no mention of loan fund before the earlier Assessing Officer. As regards notice under section 142(1) of the Act dated 09.10.2015, the Assessing Officer has specifically asked query that copy of the interest expenses and interest income during the year should be produced. The assessee vide letter dated 28.10.2015 has given the details regarding the interest income but the details lack the mention of loan fund. As per Section 147, Explanation-3 for the purpose of assessment or reassessment under this section, the Assessing Officer may assess or reassess the income in respect of any issues which are escaped assessment and such issue comes to the notice subsequently in the course of proceedings under this section, notwithstanding that the reason for said issue has not been included in the reasons recorded under sub Section-2 of Section 148. The contention of the assessee that there is change of opinion is not a valid contention as in the present case the assessee has not mention ..... X X X X Extracts X X X X X X X X Extracts X X X X
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