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TMI Blog2023 (7) TMI 1032X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax (Appeals) [CIT(A)] is bad both in the eye of law and on facts. 2. On the facts and circumstances of the case, the learned CIT(A) has erred in rejecting the contention of the assessee that the reassessment proceedings initiated by the learned A.O. are bad in the eye of law as the reasons recorded for the issue of notice under Section 148 are bad in the eye of law and are contrary to the facts. 3. On the facts and circumstances of the case, the learned CIT(A) has erred in confirming the initiation of proceedings under section 148 of the Act despite the fact that the assessment has been reopened without there being any allegation in the reasons recorded about the income having escaped assessment on account of the failure on the part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d both on facts and in law in confirming the said disallowance, without giving any cogent findings in this regard. 7(i) On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the disallowance of an amount of Rs. 4,73,15,868/- made by AO on account of additional depreciation on plant and machinery. (ii) That the said disallowance was made despite the assessee being eligible for the same as per the provisions of the Act." 3. In ITA No. 5547/Del/2017, following grounds have been raised by the Revenue: "1. Whether on facts and in circumstances of the case, the Ld. CIT(A) is legally justified in reducing disallowance of Rs. 7,57,47,000/- to Rs. 2,68,17,071/- on account of 'know-how' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the belief that income has escaped assessment: 4. The assessment u/s 143(3) of the Act in the case M/s National Fertilizers Ltd. was completed at an income of Rs. 308,46,24,760/- on 22.12.2008, as against returned income of Rs. 245,21,91,974/-. 5. From the perusal of assessment records of AY 2006-07 it has been found that, i) assessee had claimed Rs. 7,70,13,000/- on account of Rebates and discount in the profit and loss account but as per notes to accounts sales are net of rebates and discounts. Hence, this amount had already been netted from the gross sales. Therefore, the expenditure claimed by the assessee shall be disallowed and added back to the Income of the assessee. Hence, under assessment of income of Rs. 7,70,13,000/-. ii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hargeable to tax u/s 41" was not added back in the ITA Nos. 4723 & 5547/Del/2017 computation of income of the assessee. Hence, under assessment of income of Rs. 2,22,06,299/-. On the basis of examination of the facts and circumstances for A.Y. 2006-07 as above, I have reason to believe that the income has escaped assessment on account of failure on the part of the assessee to disclose truly and fully all material facts necessary for assessment within the meaning of proviso to Section 147 of the Income Tax Act, 1961. 6. Since four years have expired from the end of the relevant assessment year and the assessment was made u/s 143(3) of the I.T. Act, as per provisions of Section 151(1) of the I.T. Act, necessary approval of the Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is the assessee's own audit report, which has been filed with the return of income before the revenue authorities. There is no new tangible material with the AO after four years that the assessee company has escaped assessment. Thus, there is no whisper in the reasons recorded, of any tangible material which came to the possession of the Assessing Officer subsequent to the issue of the intimation. Hence, we have no hesitation to hold that the case has been re- opened bereft of the conditions prescribed u/s 148 of the Income Tax Act, 1961. Consequently, we hold that the assessment u/s 148 is void ab initio. 9. In the result, the appeal of the assessee is allowed and that of the Revenue is dismissed. Order Pronounced in the Open Court on 01 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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