TMI Blog2022 (12) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court in the case of TANMAC India v. DCIT. [ 2017 (1) TMI 122 - MADRAS HIGH COURT] we find no reason to interfere with the order passed by the ld. CIT(A). Accordingly, the ground raised by the Revenue is dismissed. - I.T.A. No. 704/Chny/2020 - - - Dated:- 18-11-2022 - Shri V. Durga Rao , Judicial Member And Shri G. Manjunatha , Accountant Member Appellant by : Shri P. Sajit Kumar, JCIT Respondent by : Shri S. Sridhar, Advocate ORDER PER V. DURGA RAO , JUDICIAL MEMBER : This appeal filed by the Revenue is directed against the order of the learned Commissioner of Income Tax (Appeals)-7, Chennai, dated 09.03.2020 for the assessment year 2008-09. 2. The appeal filed by the Revenue is delayed by 78 days in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly, the assessment was reopened under section 147 of the Act and notice under section 148 of the Act dated 12.03.2013 has been issued to the assessee. Further, the reasons for reopening has also been provided to the assessee vide letter dated 16.09.2013. The assessee has also filed its reply dated 09.11.2013. After considering the submissions of the assessee, the Assessing Officer has completed the assessment under section 143(3) r.w.s. 147 of the Act dated 12.03.2014. 4. The assessee carried the matter in appeal before the ld. CIT(A) and challenged reopening of assessment on the ground that there is no tangible material available with the Assessing Officer while reopening the assessment. Only on the basis of materials already ava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment tax payable as per the original return of income for the assessment year till the revised return of income was filed. The assessee company has also raised the provision for expenses and bad debt in the balance sheet and the same has not been added while computing the total income and there is short levy of interest under section 234C of the Act in the said order dated 09.12.2011. In addition to the above, the assessee company has not added the foreign exchange loss reduced from the income for the assessment year 2007- 08 to the income for the assessment year 2008-09 and therefore, the Assessing Officer reopened the assessment under section 147 of the Act. From the above, it is very clear that no new or tangible material brought on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as under: 10. Let us now see the sequence of events that have transpired in this case. The Assessee filed a return of income pursuant to which, an intimation dated 01.12.1998 under section 143(1) (a) of the Act was issued. The provisions of Section 143(2) require that if the Assessing Officer considered it necessary or expedient to ensure that the Assessee has not understated income, claimed excessive loss or underpaid tax in any manner, the assessment is to be subject to further scrutiny, a notice under section 143(2) is liable to be issued and the assessment completed on or before 31.03.2001. This was not done in the present case. Subsequently, a notice under section 148 has been issued on 09.12.2002 under section 148 of the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue a notice u/s.143(2) of the Act to initiate proceedings for scrutiny of the return of income, the obvious conclusion is that he does not consider it necessary or expedient to do so, the inference being that the Return of Income filed in order. It is this opinion that cannot be arbitrarily changed by the Assessing Officer, to re-assess income on the basis of stale material, already on record. If, we thus keep in the mind, the above fundamental requirement of Section 147, it would be apparent that the exercise undertaken by the Revenue in this case is not one of the re-assessment, but of review. The reasons make it abundantly clearly that the reassessment is sought to be initiated on the basis of the return of income and the enclosures whic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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