TMI Blog2022 (2) TMI 1093X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Income Tax/Chief Commissioner/Principal Commissioner/ Commissioner in terms of Section 151(1) of the Act for obtaining an approval for re-opening of the assessment for the year under consideration and documents evidencing the approval received from the Principal Chief Commissioner of Income Tax/Chief Commissioner/Principal Commissioner/ Commissioner. Assessing Officer instead of providing these documents simply dismissed petitioner s request by saying it is purely an administrative matter and all correspondence have been made through system. Assessing Officer was duty bound to provide all the documents called for by petitioner and his reluctance to provide these documents only would make the court draw adverse inference again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is actually realised. The said income accordingly was not offered to tax in the return of income on accrual basis but is offered to tax on actual receipt basis. Petitioner stated that in its Annual Report of previous year ending 31st March, 2013 relevant to the Assessment Year 2013-14, this fact was specifically disclosed in the significant account policies. Petitioner also states that in the tax audit report it is also stated that interest and other charges due ₹ 25,66,54,010/- on Non-Performing Assets are not credited to statement of Profit and Loss Account pursuant to RBI directions. 2. Petitioner s case was selected for scrutiny and during the course of assessment proceedings, petitioner received a notice dated 7th August, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice of respondent that the Delhi High Court has held that where the assessee was NBFC it was governed by the provisions of RBI Act. In such a case, interest income could not be said to have accrued to the assessee having regard to the provisions of Section 45Q of the RBI Act and prudential norms issued by RBI in exercise of its statutory powers. As per these norms, the ICD has become NPA and on such NPA where the interest was not received and possibility of recovery was almost NIL, interest could not be treated to have been accrued in favour of the assessee. It was also brought to the notice of the Assessing Officer that the Delhi High Court in the said judgment of Vasisth Chay Vyapar Ltd. (supra) had considered the Hon ble Apex Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner/Principal Commissioner/ Commissioner. The Assessing Officer instead of providing these documents simply dismissed petitioner s request by saying it is purely an administrative matter and all correspondence have been made through system. The Assessing Officer was duty bound to provide all the documents called for by petitioner and his reluctance to provide these documents only would make the court draw adverse inference against respondent. It will be apposite to quote the following from the judgment of the Delhi High Court in case of Sabh Infrastructure Ltd. vs. Assistant Commission of Income Tax [2017] 398 ITR 198 (Delhi) which reads as under : Before parting with the case, the Court would like to observe that on a rout ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise of considering the assessee's objections to the reopening of assessment is not a mechanical ritual. It is a quasi- judicial function. The order disposing of the objections should deal with each objection and give proper reasons for the conclusion. No attempt should be made to add to the reasons for reopening of the assessment beyond what has already been disclosed. 5. Therefore, the order dated 17th December, 2021 impugned in this petition is quashed and set aside. The matter is remanded for denovo consideration. The concerned officer shall keep in mind that the exercise of considering the assessee s objections to the re-opening of assessment is not a mechanical ritual but a quasi judicial function. The order disposing of the ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is scanned and reproduced herein below :- We are surprised to notice that paragraph no.3 in the actual reasons is missing in the letter dated 6th August, 2021. Paragraph no. 4 in the letter dated 6th August, 2021 is missing in the reasons given for obtaining approval. 7. If one considers paragraph no.3 of the actual reasons submitted for obtaining approval, which is missing in the letter of 6th August, 2021, it clearly shows change of opinion. It also gives us an impression this omission was deliberate, being aware of the legal position. We are also surprised how the approval was also given after reading paragraph no.3 of the actual reasons. 8. In the circumstances, the Revenue is directed to adhere to the followi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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