TMI Blog2023 (4) TMI 1173X X X X Extracts X X X X X X X X Extracts X X X X ..... ./2022 - - - Dated:- 26-4-2023 - Shri Prashant Maharishi, Accountant Member And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : Shri K. Gopal For the Revenue : Shri Ankush Kapoor ORDER PER SANDEEP SINGH KARHAIL, J.M. The present appeal has been filed by the Revenue challenging the impugned order dated 21/10/2021 passed under section 250 of the Income Tax Act, 1961 ( the Act ) by the learned Commissioner of Income Tax (Appeals)-54, Mumbai [ learned CIT(A) ], for the assessment year 2012-13. 2. The present appeal is delayed by 130 days. At the time of the hearing, the learned Departmental Representative ( learned DR ) by referring to the authorisation memo submitted that the copy of the impugned order was received on 18/11/2021, and the last date for filing of appeal, in this case, was 16/01/2022. By placing reliance upon the order dated 10/01/2022, passed by the Hon'ble Supreme Court, in M.A. no.21 of 2022, in M.A. no.665 of 2021, in Suo-Motu Writ Petition (Civil) no.3 of 2020, the learned DR submitted that the limitation period for filing the appeal was extended upto 29/05/2022, and the Revenue filed the present appeal on 27/05/2022 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal, if need be. The appellant craves leave to amend or alter any grounds or add a new ground, which may be necessary. 4. During the hearing, at the outset, the learned AR wishes to press the petition dated 17/01/2023, filed under Rule 27 of ITAT Rules, 1963, whereby the assessee has raised jurisdictional ground challenging the validity of reassessment proceedings under section 147 of the Act. The aforesaid petition was taken on record and the present appeal was heard on same. 5. The brief facts of the case as emanating from the record are: The assessee is engaged in the business of development of real estate projects. For the year under consideration, the assessee filed its return of income under section 139(1) of the Act on 27/09/2012, declaring a net loss of Rs.35,66,74,501. The return filed by the assessee was selected for scrutiny and vide assessment order dated 20/02/2015 passed under section 143(3) of the Act, the Assessing Officer ( AO ) assessed the income of the assessee at loss of Rs. 35,66,74,501. Subsequently, vide notice dated 29/03/2019 issued under section 148 of the Act reassessment proceedings were initiated in the case of the assessee. In response to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... original assessment proceedings and thus, there is no failure to disclose truly and fully all material facts. The learned AR also submitted that part of the receipt, which has been doubted by the AO in the present case, was also received in the preceding assessment years and the same has been accepted to be the business income of the assessee. 8. On the contrary, the learned DR by vehemently relying upon the orders passed by the lower authorities submitted that the assessee has failed to bring on record the relevant material that expenses/loss claim by the assessee were not having any nexus with the income offered in its return of income and in the year under consideration, the assessee earned no business income. 9. We have considered the rival submissions and perused the material available on record. In the present case, the assessee challenged the validity of reassessment proceedings under section 147 of the Act before the learned CIT(A) and vide impugned order (at page 18) said additional ground raised by the assessee was dismissed. Thus, it is not a case wherein the jurisdictional issue has been raised for the first time before us vide petition filed under Rule 27 of ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 37 of the Act clearly stipulates that the expenditure of business should be allowed only if the said expenditure has been incurred wholly and exclusively for the purpose of business or profession. In view of the above, I have reason to believe that the income of Rs.10,67,59,804/- being the business loss claimed by the assessee chargeable to tax has escaped assessment within the meaning of Section 147 of the Income Tax Act, 1961. Though the assessment had taken place in the instant case but the assessee had failed to disclose true and full particulars of income for the year under consideration. 4. Applicability of the provisions of Section 147/151 to the facts of the case :- In view of the above, the provisions of clause (c) of Explanation [2] to Section 147 are applicable to the facts of this case and the assessment year under consideration is deemed to be a case where income chargeable to tax has escaped assessment. In this case, more than four years have lapsed from the end of the assessment year under consideration. Hence, necessary sanction to issue notice u/s.148 is being obtained separately from the Principal Commissioner of Income Tax (Central)-3, Mumbai as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years from the end of the relevant assessment year i.e. 2012-13. Therefore, it needs to be examined whether the conditions prescribed in 1st proviso to section 147 of the Act are satisfied in the present case. There is no dispute that return of income was filed by the assessee under section 139(1) of the Act. Thus, in order to determine the validity of the impugned reassessment proceedings, in the present case, now it needs to be examined whether there is any failure on the part of the assessee to disclose fully and truly all material facts. 14. In the present case, the original return filed by the assessee was selected for scrutiny, and statutory notices under section 143(2) as well as section 142(1) of the Act were issued and served on the assessee. We find that vide notice dated 20/08/2014 issued under section 142(1) of the Act, forming part of the paper book from pages 32-37, the assessee was asked to furnish the copy of the return of income, computation of income, audited profit and loss account, balance sheet, Tax Audit Report under section 44AB, auditor s report, Form 3CB, etc. The assessee vide its submission dated 10/10/2014 complied with the aforesaid notice and furni ..... X X X X Extracts X X X X X X X X Extracts X X X X
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